ROME, Dec. 28 (Xinhua) -- Italy's upper house of parliament approved the 2025 budget law on Friday, marking the final step in passing the 30 billion euros (31.2 billion U.S. dollars) package. The budget aims to stimulate the economy through tax cuts, social incentives, and targeted spending.
According to documents released previously, more than half of the budget will be allocated to reduce taxes and social security contributions.
Tax relief will be extended to households earning up to 40,000 euros annually, while businesses that increase hiring or reinvest profits will see their corporate tax rate reduced from 24 percent to 20 percent.
To help fund these measures, the government has requested a contribution of approximately 3.4 billion euros from Italian banks in 2025 and 2026.
In an effort to address Italy's declining birthrate, the budget includes a 1,000-euro bonus for new parents with household incomes up to 40,000 euros per year.
Additionally, 1.3 billion euros would be allocated to the national health system mainly for wage increases for doctors, nurses, and other emergency medical staff in the 2028-2030 period.
According to a multi-year financial plan approved with the budget, the government sets to bring down its deficit-to-GDP ratio to 3.3 percent in 2025 and further to 2.8 in 2026 from 3.8 percent in 2024.
However, Italy's public debt is forecast to rise slightly, from 135.8 percent of GDP in 2024 to 136.9 percent in 2025 and 137.8 percent in 2026.
The 2025 budget passed the lower house last week and was finalized in the Senate on Friday with 108 votes in favor, 63 against, and 1 abstention. (1 euro = 1.04 U.S. dollars)
