Wednesday, June 4, 2008

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PUBLIC ACCOUNTS AT RISK: THE FAULT OF THE NEW CUTS

The OECD says the Outlook economism: the Italian public finances would "deteriorate" in 2008 as a result of slower growth and measures to increase the deficit by providing a report for this year's deficit / GDP 2.5% and 2.7% for 2009 (was 1, 9% in 2007). According to the organization, "you might regret it" cuts the tax burden, particularly in the case of the ICI tax cut and the abolition of IRAP, "if the recent improvements in tax collection and the consequent widening of the tax base will not be supported '.

According to the OECD, the public deficit Italian - which in 2007 was "significantly reduced" - should return 'to worsen in 2008. " Also according to the OECD, the Italian economy will grow by only 0.5%. In 2009 the gross domestic product should increase instead of 0.9%. The Combined Report on the economy, the Treasury expected in March grew by 0.6% this year.

As regards expenditure, the OECD notes, "social transfers and public investment should grow." For the international organization "you will regret" if the fight against tax evasion and the consequent increase in the tax base "does not confirm." Moreover, 'no improvement in the primary should be recorded in the next two years. " However, the OECD notes, "the reduction of the debt / GDP is expected to continue at a slower pace."

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