21 February 2025| With a Focus Paper dedicated to the 2025 budget manoeuvre, the Parliamentary Budget Office (PBO) today provides an overview of the financial and economic impacts compared to the scenario under current legislation for the year just ended and in the three-year period 2025-27, the impact on the recipients and the economic bases, and the main changes introduced during the parliamentary process. The manoeuvre includes the measures of the Budget Law approved by Parliament on 28 December 2024 and those contained in the law converting Decree-Law 155/2024 and in Legislative Decree 192/2024 on the revision of income taxes.
In summary, the PBO analysis notes that
1. The manoeuvre increases the deficit in 2025-27 and postpones the return of the deficit below 3 per cent of GDP by one year.
2. Households are the main beneficiaries of the manoeuvre with 53 billion in 2025-27, while the impact on businesses and the self-employed is restrictive.
3. On the revenue side, taxes on labour are reduced and taxes on capital are temporarily increased in 2025-26.
4. The main expenditure items are defence, health and social protection.
5. The parliamentary procedure has introduced several new measures.
An infographic representing the main elements of the Focus is also available.
