Italy's new right-wing government signed off on its first budget on Tuesday, a package focusing on curbing sky-high energy bills and cutting taxes from next year for payroll workers and the self-employed.

The measures total almost 35 billion euros ($35.84 billion), with Rome planning to fund around 60 percent of the package by driving up next year's budget deficit to 4.5 percent of gross domestic product (GDP) from 3.4 percent forecast in September.