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FILE PHOTO: Matteo Salvini is waiting for a news conference after a cabinet meeting at Chigi Palace in Rome, Italy, October 20 2018. REUTERS / Remo Casilli / File Photo
(Reuters) – The Italian government will maintain its deficit and economic growth forecasts for 2019 despite European Commission demands for the budget plan to be revised, Prime Minister Deputy Matteo Salvini said late on Tuesday.
The Commission last month rejected Italy's plan for a big increase in the deficit and described its growth forecast for 2019 as overly optimistic. It set Tuesday as a deadline for Rome to respond to its objections.
In a statement released after a cabinet meeting, Salvini said the deficit would remain at 2.4 percent of economic output, and the growth forecast at 1.5 percent, although asset sales would be closely monitored.
The International Monetary Fund said earlier that Italy's fiscal stimulus plans would be more expensive than recession, recommending a "modest" tax consolidation.
The IMF says that the fiscal year is stable, and that the growth of the economy is likely to be outweighed by the "substantial risk" of a rapid deterioration.
Gareth Jones and John Mair Editing
