Italy increased its deficit to gross domestic product (GDP) ration target to 2.2% for the fiscal 2020, media reported following a cabinet meeting on the topic of debt and growth in Italy's economy.
The target has been increased by 0.1 points from the 2.1% which was determined as the target ratio in April this year.
In July, the European Union decided not to initiate a budget procedure against Italy after Rome promised to adhere to EU spending rules in its 2020 budget. According to the EU's Stability and Growth Pact, a member state's budget deficit cannot be larger than 3% of its GDP whereas its national debt cannot be larger than 60% of its GDP.
