The 2016 Budgetary Policy Report examines the fiscal policy documents and the Stability Bill for 2016, re-presenting here its reports to the appropriate parliamentary committees in hearings held on 29 September and 3 November, with additions and further developments. Additional analysis of specific aspects of the budget measures for 2016 will be published shortly in the PBO’s Focus Paper series.
The Report is organised into three chapters. The first addresses the macroeconomic environment, assessing economic conditions (on the basis of information available at the end of November), reporting the PBO’s analysis of the Government’s macroeconomic forecasts and their validation for the 2015-16 period and discussing the risks underlying the entire forecasting horizon (which extends to 2019).
The next chapter examines the trend and policy scenario for the public finances as well as the structure of the measures provided for in the 2016 Stability Bill. The chapter also assesses compliance with national and European fiscal rules.
The third chapter focuses on an analysis of the main public finance measures (elimination of the municipal services tax (Tasi) for primary residences, business taxation, public expenditure reduction measures, and anti-poverty initiatives).