Yes, Italy's 2023 budget has a little-known provision for financing the country's digital transformation. The Italian government has approved a budget for the year 2023 with a total of 35.5 billion euros ($40.02 billion) in spending, according to Finance Minister Giovanni Tria.
The government will use some of this money to promote technological development in the country, he said at a press conference on Wednesday. It will also finance digital transformation projects and tax cuts for small companies over the next five years.
Budget for Digital Transformation in Italy
The digital transformation section of the budget calls for spending 35.5 billion euros over the next five years.
1: Italy will spend 35.5 billion euros on digital transformation in the next five years.
2 It will spend this money on unnamed (no details) projects and taxes; nothing that a mere €35 billion can help with…(It's a lot of money; it could be used to hire more teachers or pay more pensioners.
On top of that, not all funds are available right away. Tria noted that "if deficit targets are met for 2019–2020 reform," government departments and local authorities could only access a third of the amount set aside for digital transformation.
In addition, Italy approved its 2023 budget draft with many ambitious projects and plans, from "a migration from discretionary to non-serviceable sectors" to "an ambitious tax reform." This year, however, was also important for the Italian government in terms of taxes. On January 6 (the same day as US President Donald Trump’s State of the Union address), Prime Minister Giuseppe Conte announced two new taxes: on social media companies and cryptocurrencies.
The government will receive an extra 100 billion euros in revenues from these new taxes over the next three years, the Italian Ministry of Economy said. The government will use some of this money to fund its digital transformation projects and tax cuts for small companies over the next five years, according to a readout from the finance ministry.
While last year cryptocurrencies were primarily used for criminal activities such as money laundering, this year, Italy is moving to tax and regulate them as any other type of investment.
Relatively large ECONOMY
The latest Treasury projections, which are more optimistic than those of many independent forecasters, predict that Italy's GDP will grow just 0.6% next year, compared to a record 3.7% this year due to severe inflation.
The budget raises the annual income cap for self-employed taxpayers from the existing level of 65,000 euros to 85,000 euros, implementing one of Meloni's most prominent fiscal promises.
The bill reopens a dedicated state-backed business that had been thrown into liquidation in order to handle the project of building a massive bridge linking Sicily to the Italian mainland, a long-time pet project of Italy.
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