Regional officials said Thursday
that what government takes away in tax and other cuts will have
to be made up for on the local level - perhaps with an increase
in health co-payments.
However, Economy Minister Pier Carlo Padoan said that there
will be no need for local authorities to raise taxes due to the
abolition of property tax IMU and local-services tax TASI.
"We are axing TASI on primary residences, except for stately
homes and castles, and we will reimburse the money to the local
councils. The councils won't raise taxes," he said.
The minister also defended the budget from criticism that
it is not progressive and stressed that the government is
committed to "permanent" tax cuts.
"The budget is orientated to those with low incomes," he
said. "Taxes remain for those with more than one property, which
shows that the budget is progressive".
Premier Matteo Renzi also weighed in, saying "to those who
say that other taxes will rise, I say that in 2016 no
municipality or region will be able to raise them compared to
2015, by law".
He wrote on his website Thursday that "the soul of the
budget bill lies not in taxes but in social welfare
investments".
However, the regional budget councillors coordinator
appeared to disagree when he said it is up to regions to decide
whether or not to raise co-payments to offset government cuts to
the national health service budget.
"The law calls for automatic increases to IRPEF and IRAP
tax surcharges, but governors and regional councils can also
choose to act on co-payments," said Massimo Garavaglia.
Eight Italian regions - Abruzzo, Calabria, Campania,
Lazio, Molise, Piedmont, Puglia and Sicily - are already
increasing patients' co-payments as well as taxes in a bid to
cut health spending and balance their budgets, he said.
A government report tracking the budgets of 108 Italian
hospitals in 2014, found that 31 were in the red and 24 were at
risk of restructuring.
In other measures, the latest draft of the government's
budget bill would slash civil service turnover in 2016-2018 to
25% of the amount spent on pensions for retired civil servants.
That is down significantly from figures in the previous draft,
which called for 60% in 2016, 80% in 2017 and 100% in 2018.
As well, the 2016 draft budget sets new ceilings on
executive pay at companies owned or partly owned by central and
local government. A decree to be issued by April 30 will split
the companies into three categories with "qualitative and
quantitative" parameters for each and a top limit of 240,000
euros a year.
Also on Thursday, Renzi said his government would cut
gambling outlets to 15,000 in the 2016 budget, denying reports
that they would be increased by 22,000. In particular, he said,
bars with slot machines would be cut from 6,000 to "1,000 at the
most". He said "we are combating gambling...anyone saying the
contrary is lying". Renzi had come under criticism from groups
that help gambling addicts after reports the budget would boost
the number of gambling shops, slot machines and video poker
outlets.
The budget bill must be submitted officially to President
Sergio Mattarella for his signature - which Padoan said will
happen on Thursday night. After that, it is sent to parliament
for debate. The government's draft of the budget bill will
likely be made public on Friday, ANSA sources said.
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