Budget bill worth 26 billion: Irpef at 33% up to 55,000 euros

The Council of Ministers, meeting in the afternoon of Wednesday, October 28, approved the Budget bill for 2027, the last of the legislature. According to what Giorgia Meloni stated at a press conference, the measure is worth approximately 26 billion euros overall.

The most significant measure concerns Irpef: the text raises the threshold of the second tax bracket to 33% up to 55,000 euros of income, with a declared benefit of 500 euros a year for the taxpayers concerned. This is the measure the government emphasized the most in presenting the bill, described by Meloni as the fulfillment of a previous commitment. “We keep our promises,” the prime minister said.

Alongside the Irpef cut, the budget bill introduces a social voucher of 300 euros for those over 75 with a pension of up to 28,000 euros a year. This is a measure targeted at a specific segment of low-income pensioners, separate from the other welfare provisions in the text.

As for funding sources, the government pointed to the financial sector as one of the main ones: about 5 billion euros will come from banks and insurers, with a 90,000-euro exemption threshold set for cooperative banks and smaller credit institutions, designed to soften the impact on smaller operators. This mechanism essentially mirrors other measures on the banking sector already used in previous budget bills to fund social or fiscal measures.

The bill also allocates an additional 3.4 billion euros for the National Health Fund, one of the spending items the government indicated as a priority, alongside income support for households with elderly pensioners.

The measure approved yesterday by the Council of Ministers must now go through the parliamentary process, with examination by both houses leading to possible changes to the text before final approval by the end of the year. The technical details of the funding sources indicated for each measure, starting with the contribution requested from the financial sector, remain to be clarified in the coming weeks.