By Giuseppe Fonte

ROME (Reuters) -Italy sees this year’s budget deficit at around 3% of national output (GDP) or slightly below, people familiar with the matter told Reuters on Monday, as the government finalises its new multi-year budget plan to be unveiled this week.

Rome in April had estimated a deficit of 3.3% of GDP in 2025, but higher-than expected tax revenue and lower interest paid on sovereign bonds mean the fiscal gap will be lower, the sources said, asking not to be named.

Although the figures are subject to possible slight changes ahead cabinet approval, the Treasury is confident the deficit will fall this year to 3% of GDP or lower, from 3.4% in 2024, the sources said.

The cabinet meeting to sign off on the numbers is expected to be held on Thursday.

A deficit-to-GDP rati

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