Sprint on Pnrr and 8 billion in the Italians’ pocket. Def government commitments

Between the reduction of the tax burden and the reform of IRS rates, the Government intends to allocate almost 8 billion euros to the pockets of Italians. This is the forecast for 2023 and 2024 contained in the report attached to the Def (Economy and Finance Document) sent by Minister Giancarlo Giorgetti to Parliament. Furthermore, if the Pnrr (National Recovery and Resilience Plan) is fully implemented, our country’s GDP is destined to grow by 3.4% by 2026.

As for the money that the government intends to allocate to support the purchasing power of families, the exact amount is equal to 7.9 billion. These resources will be in deficit, «confirming the programmatic objectives of net debt already authorized with the planning documents of last November and according to what is indicated in the Def – the document reads -. In structural terms, the balance is equal to -4.9% in 2023, -4.1% in 2024, -3.7% in 2025 and -3.2% in 2026. The resources that become available will be used with a regulatory provision to be adopted soon to support the disposable income and purchasing power of workers in 2023, and will be affected, in 2024, to measures to reduce the tax burden”. As mentioned, the largest deficit that will be authorized will amount to “3.4 billion euros in 2023 and 4.5 billion in 2024”.

As explained by the Minister of Labour, Marina Calderone, “the cut of the wedge serves to provide more answers, we have already carried out a maneuver, identifying a group of workers who had income that needed to be supported. Now we are increasing by one point, turning support to families and income from work ». The objective is to reach a global cut “of 5 points” by the end of the legislature, confirms Calderone, underlining however that “we will have to do it with attention to the public accounts and in a progressive way”.

Then there is the Pnrr chapter. Discussions on a partial revision of the Plan are in the last few weeks, to adapt it to the scenarios that have changed since its inception. The important thing, however, is being able to spend all the money that Europe gives to Italy, equal to 191.5 billion between loans and non-repayable resources. One of the Def’s annexes highlights a significant impact on growth: if all Pnrr projects are implemented, Italy’s GDP “will increase by one percentage point in 2023, 1.8 in 2024 and 2.7 points in 2025”. While “in 2026, the last year of the Plan, GDP would be 3.4% higher than in the base scenario (which does not consider such expenses)”. But “to make our country more dynamic, innovative and inclusive, the Pnrr alone is not enough – underlines Giorgetti -. In fact, it is also necessary to invest in reinforcing the national productive capacity and to work on a longer time horizon than that of the Plan, in order to allow the creation of adequate conditions to avoid new outbreaks of inflation. This is a topic that must be addressed not only in Italy, but also in Europe».

The minister is confident: “Although the growth forecasts are cautious, the will and ambition of this government regarding the growth of the Italian economy remains confirmed. In the short term, efforts will be made to support the resumption of growth signaled by the latest data, as well as to contain inflation”. In this context, he adds, “it is therefore totally realistic to point to an increase in the GDP and employment growth rate in the coming years that goes far beyond the forecasts in this document”.

Finally, Giorgetti also points out that the future is built by supporting families to have children: «The reforms launched, starting with the fiscal reform, intend to revive Italians’ confidence in the future, protecting families and the birth rate and, recognizing the entrepreneurial spirit engine of economic development, promoting work as an essential expression of being a person”.

Source: IL Tempo

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