The lower house said the revised spending bill was approved by a vote of 327 to 228.
Earlier this week, European Parliament President Antonio Tajani said that proposed changes to the parameters for the Italian state budget would result in economic slowdown and public debt increase.
The European Commission said in fall it could not accept Italy’s high-spending budget that would raise the cash-strapped nation’s deficit to 2.4 percent next year. The amended bill cut that target to 2.04 percent.
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Italy ranks second after Greece in the European Union in terms of public debt, with its debt amounting to 131.8 percent of the country's GDP.