Mustafa AY – TDO – 04.08.2018 On Friday, Matteo Salvini -Italian Deputy PM and Interior Minister- made utterances about the budget proposal that Italian government will introduce the parliament. In accordance with briefing of Minister Salvini, Rome focuses on regulating state’s fiscal policies by reforming pension system and implementing tax cuts. In case of that parliament passed the budget proposal, Italian government will make contributions to low income owners as well as invigorate or stimulate the economy by providing incentives for small-medium entrepreneurs.
On the agenda of Rome administration, new fiscal policies would likely contravene EU fiscal rules. Experts said that the government’s reform on pension system and tax cuts will increase state debt, which is already large. Because in case of enforcing this budget proposal, Rome will have low revenues which leads the government to suffer from budget deficit and accordingly larger state debt at the final stage. However, Italian government can take essential precautions like putting public austerity programs into effect. In this case, Italy may get rid of both budget deficits and state debts simultaneously.