Meloni Defends Italy's 2026 Budget Plan, Citing Optimal Resource Allocation

Cabinet Approves 2026 Budget

Italian Prime Minister Giorgia Meloni has publicly defended the government's recently approved 2026 budget plan, emphasizing that available resources have been utilized optimally. The cabinet gave its approval to the €18.7 billion ($21.8 billion) stimulus package on Friday, October 17, 2025, outlining significant tax reliefs and targeted investments. Meloni stated that the budget maintains 'the same major priorities as previous ones: families and birth rates, tax cuts, business support, and healthcare.' The draft law now awaits debate and approval by both chambers of parliament before the end of the year.

Key Allocations and Priorities

The 2026 budget is structured around several key areas, reflecting the government's strategic allocation of funds. Major components include:

• Tax Reductions: Approximately €9 billion will be allocated over the next three years for tax cuts targeting middle-income households.
• Family and Birth Rate Support: A sum of €1.6 billion is earmarked to support families and boost the national birth rate, including a modest increase in monthly benefits for working mothers, rising from €40 to €60.
• Business Investment: €8 billion is directed towards supporting businesses.
• Healthcare Sector: An additional €2.4 billion will be allocated to the public health system, supplementing an existing €5 billion investment fund. These funds are designated for wage increases for nurses in 2026, the recruitment of approximately 6,300 nurses and 1,000 doctors, and the expansion of cancer screening programs.

Funding Mechanisms and Fiscal Targets

To finance the comprehensive plan, the government intends to implement ministerial spending cuts and secure contributions from the financial sector. Banks and insurance companies are expected to contribute over €11 billion to state finances between 2026 and 2028. The budget also projects Italy's public deficit at 2.8 percent of GDP for 2026, a figure that aligns with the European Union's fiscal regulations, which cap the deficit-to-GDP ratio at 3 percent. This fiscal strategy aims to consolidate public finances while supporting economic growth.

Government's Stance

Prime Minister Meloni has consistently defended the government's approach to budgetary planning, emphasizing a balanced strategy that addresses social needs while maintaining fiscal responsibility. Her statements underscore a commitment to strengthening existing measures and expanding their reach, particularly in areas deemed crucial for the nation's long-term stability and prosperity. The government's focus remains on supporting low and medium-income earners, families with children, and bolstering the healthcare system, all within the constraints of available resources.