Corte dei Conti: only 30% of 2027 budget revenue is permanent, many tax breaks last one year

Overall judgment

On 9 November 2026 the Corte dei Conti, Italy's state audit body, was heard by the joint Budget committees of the Chamber of Deputies and the Senate on the 2027 budget bill (legge di bilancio). The hearings opened the preliminary round of testimony, with Confedilizia, Federmanager, Ania, Farmindustria, healthcare associations, professional bodies and the Ance construction association also scheduled to speak. The Court judged the bill, taken as a whole, to be prudent, given the need to bring public debt and deficits under control and to consolidate confidence in financial markets. It set this against an uncertain international setting, where energy and raw material prices are weighing on inflation and growth. The impact on borrowing is 30 billion euros over three years, concentrated in three areas: stability of the accounts, business liquidity and the redistribution of the tax burden.

Revenue that does not last

The Court found the revenue side fragile over time. For 2027, permanent revenues make up about 30 percent of the new revenue measures, temporary revenues 25 percent, and advances on tax receipts 45 percent, which will turn into lower revenue in later years.

Permanent revenues30%

Temporary revenues25%

Advances on tax receipts45%

Permanent revenues

30 %

Temporary revenues

25 %

Advances on tax receipts

45 %

Data from the article text

The Court said the mix aims to meet the funding needs of individual measures rather than to strengthen the tax base, and it spelled out what that means for future budgets.

“The loss of temporary revenues could create implicit costs for the next budgets, if lawmakers choose to keep funding some of the temporary measures in this budget.”

On the spending side, the Court warned that temporary rules leave taxpayers with an unclear framework, since annual regimes push up tax at expiry for the same income. A large part of the tax relief, including the Irpef rate cut, extensions of tax relief on pay rises, premiums and shifts, a voucher for the elderly and some building bonuses, applies to 2027 alone, leaving the next Parliament to decide whether to renew it.

Coverage and borrowing

Mauro Orefice, president of coordination of the Sezioni Riunite in sede di controllo, set out how the 2027 measures are covered. Just under 14 billion euros of higher revenue covers 47.5 percent of the uses, 2.8 billion euros comes from lower spending, and 12.6 billion euros from increased borrowing, which lifts the deficit share to 42.9 percent of the coverage.

Increased borrowing12.6

Lower spending2.8

Increased borrowing

12.6 billion euros

Lower spending

2.8 billion euros

Data from the article text

The structural part of the revenue rests on very few measures. About 80 percent depends on doubling the Tobin tax on financial transactions. The Court warned that the yield could fall below the estimate of 1.38 billion euros a year if trading volumes shrink after the higher levy.

Irpef and the flat tax

The Court said the Irpef has become a categorical tax, with average and marginal rates differing by type of income. The gap is sharper for self-employed workers, half of whom can opt for the flat-tax regime (regime forfettario). The cut to the marginal rate in the 50,000 to 55,000 euro bracket makes effective marginal rates irregular, which the Court considered hard to reconcile with an orderly progressive scheme. From 2028 the rate returns to 43 percent for those incomes, raising tax by up to 500 euros at the same income. The Court noted that the absolute benefit is the same and at its maximum for all taxpayers above 55,000 euros, including the highest earners.

Business liquidity and reactions

The Court gave the fiscal and contribution measures for productive activities, self-employed workers and farming credit for focusing on a fundamental part of the economy. It said the budget bill reaches small economic activities, supports employment and encourages investment in innovation.

“The budget bill intervenes on the taxation of small economic activities, supports employment and encourages investment in innovation.”

The Court cautioned, however, that financing needs must not weigh on the cash of firms, especially smaller ones, where the impact is asymmetric. Maurizio Landini, secretary of the CGIL trade union, rejected the budget bill outright in remarks made the same day.