Government’s Economic Policies Show Limited Impact on Equity in 2024: Istat

Rome: The policies implemented by Premier Giorgia Meloni’s government in the past year have had “a limited effect on income distribution,” according to a report released by Istat. The national statistics agency highlighted that equity decreased “to a slight degree” last year.

According to Ansa News Agency, Istat’s Gini index, a measure of income inequality, saw a minor increase of over a tenth of a percentage point in 2024, rising from 30.25% to 30.40%. Istat attributed this change to the replacement of the controversial citizenship wage (RdC) minimum-income benefit with the inclusion allowance (ADI), a new benefit aimed at supporting poor households. This policy shift adversely affected the poorer households, with the negative impact only partially mitigated by reforms to the income-tax Irpef.

The government justified the removal of the RdC by citing issues of widespread abuse and concerns that it discouraged individuals from seeking employment. Despite these changes, the overall impact on income distribution has been minimal, as highlighted by the slight increase in the Gini index.