Tax & Spend
Italy Faces Upward Deficit Revisions on ‘Reckless’ Stimulus Plan
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Italy will likely revise up its budget deficit for recent years, potentially bringing it near to 10% of last year’s gross domestic product, as it incorporates the cost of a tax break the country’s finance minister recently branded “reckless.”
Next week the statistics agency Istat is set to incorporate the impact of generous tax credits originally meant to stimulate green building renovations into national accounts. This review — due March 1 — will probably affect the 2021 and 2022 deficits, according to a person familiar with the matter, who asked not to be identified as deliberations are confidential. The fallout for 2023 is unclear.