(Bloomberg) -- Italian officials are set to announce a projected budget deficit for next year between 4.5% and 4.9% of economic output, according to people familiar with the fiscal plans.

The shortfall compares with a previous government forecast of 3.9%. This year’s deficit will likely be confirmed at 5.6%, said the people, who declined to be identified because the data are preliminary.

Finance Ministry officials are in the process of preparing the estimates for growth, debt and deficit for 2023-2025 as part of an abridged budget that must be published by mid-October. 

Gross domestic product is seen expanding about 0.5% next year, a massive downgrade from April’s 2.4% government prediction. The new numbers will increase the challenge for Giorgia Meloni’s right-wing coalition, which won elections on Sunday and is set take office in about a month’s time.

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