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Govt pumps up benefits for the poorest

Govt pumps up benefits for the poorest

Gives local councils more leeway in how to make spending cuts

Rome, 21 November 2014, 16:31

ANSA Editorial

ANSACheck

- ALL RIGHTS RESERVED

-     ALL RIGHTS RESERVED
- ALL RIGHTS RESERVED

The government on Friday amended its 2015 budget bill to extend its so-called baby bonus to families with total income and assets of 25,000 euros a year instead of 90,000 a year.
    At the same time, the amount of the baby bonus would double for the most disadvantaged families living on under 7,000 euros a year, according to the amendment.
    A separate amendment adds an extra 400 million euros in social benefits, divided between an additional 200 million euros available in 2015 and the same amount in 2016.
    That comes in addition to the original budget allocation of 1.5 billion euros in social benefits, sources said. Also on Friday, Lower House budget committee chair Francesco Boccia denounced a government amendment that would pay Poste Italiane, the public post office, for the cost of distributing Italy's State social card for the very poor to non-Italians with residency permits. The social card was instituted in 2008 after the start of the global economic crisis, and is charged automatically by the State with 80 euros every two months.
    Social-card holders can use it to buy food and medicine and to pay utilities bills, and they also get discounts at participating stores. It is available to the very poor, including people aged over 65 and children under three, and since 2013 it has been extended to foreigners who are legal residents. Boccia argued the amendment was "ill-conceived" because it appears to refund Poste for services it has already been compensated for. "If the objective is to pay Poste money that had already been advanced, the way is not the one indicated by the govenment's amendment," Boccia said.
    "The amendment is ill-conceived and won't even be voted on today". News of the amendment became grist for the mill of assorted right-wing and anti-immigrant opposition parties, even though the social card for legal immigrants has been in use since last year. "They confirmed the social card for immigrants. The Renzi government is instigating racism," anti-immigrant Northern League party chief Matteo Salvini told private Channel 5 TV broadcaster. The government also amended its budget bill to give city and town councils more leeway in how to cut the 1.2 billion euros in savings it has requested of them. Following pleas from mayors, the government agreed to let cities make the cuts from planned investments as well as current spending. As well, local administrations choosing to merge with other councils will be exempt from Italy's domestic economic stability pact for five years, the government said.
   

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