Istat revises deficit / GDP in 2013 to 2.8% from 3%, under 128% debt – Reuters Italy

Istat revises deficit / GDP in 2013 to 2.8% from 3%, under 128% debt – Reuters Italy

       

ROME (Reuters) – The deficit / GDP ratio in 2013 improved by 0.2 percentage points, to 2.8% from 3%, due to the new accounting system European Sec2010.

       

By adjusting the time series of national accounts to the new criteria, Istat lowers the debt / GDP ratio in 2013 to 127.9% from 132.6%.

       

The change in GDP is confirmed instead of -1.9% (concatenated values).

       

The new European rules provide for the inclusion in GDP contribution deriving from the drug trade, prostitution and smuggling of cigarettes. Expenses for research and development (R & amp; S) and arms are valued as investments.

       

The Sec2010 could also have a positive impact on the budget this year, helping the government to maintaining the deficit within 3% of GDP without the need for corrective action. If you will be spending more on margins in 2015 will be limited, however, has already made clear the President of the Council Matteo Renzi.

       

The Ministry of Economy will update the macroeconomic and public finance 1 October, two weeks after the launch of the Law of Stability for 2015.

       

As a result of Sec2010 GDP at market prices last year’s sale of 59 billion (+ 3.8%) to 1.6189 trillion. Revised upwards both final consumption is gross fixed capital formation, exports and imports were reduced.

       

Istat remember that the time derivative transactions do not affect most on net. This alone has reduced the interest on the debt of 3.2 billion in 2013 Conversely, however, the primary surplus fell from 2.2 to 2% of GDP.

       

In addition, taxes have been recognized as some streams that were previously excluded from the circuit of government. This is the case of the charges in the bill (the component A3) that finance the production of electricity from renewable sources. Read more …