Italy's lower house of parliament has approved a tax-cutting budget, the government said on Sunday, clearing the way for voting in the upper house Senate which must approve it by the end of the year. Prime Minister Matteo Renzi has proposed cutting a tax on primary residences, reducing some corporate levies and raising spending on culture and on security to combat the militant threat to Europe.
Renzi's government raised its budget deficit target last week to 2.4 percent of gross domestic product, above the 2.2 percent target it has pledged to the European Commission.
Before the deficit hike, the European Union said Italy's plans risked breaking its rules and reserved a final judgement on whether to approve it until spring of 2016.
The budget document will move to the upper house on Monday, for reading and approval by senators.
After jihadists killed 130 people in Paris in November, Renzi said he planned to direct state funds towards bursaries for study, developing poor urban areas, and giving 18 year-olds money to spend on theatre and concert tickets.
Italy is lobbying the EU to let it exclude spending on the migration crisis, which looks set to bring 1 million people to Europe by land and sea this year, from deficit calculations.
Initial plans also included proposals to scrap levies on agricultural and industrial equipment.