By Giada Zampano and Deborah Ball

ROME - The Italian government won a confidence vote Wednesday afternoon in Italy's Senate on its 2017 budget law.

The vote is a precursor to a final vote on the bill later Wednesday afternoon, enacting a 27 billion euro ($28.89 billion) expansionary budget, which averts a planned value-added tax hike and includes measures to allow people to retire earlier.

After the final Senate vote, Prime Minister Matteo Renzi is expected to step aside, with the exact timing likely to become clear after a speech late Wednesday afternoon to his party.

-Write to Giada Zampano at giada.zampano@wsj.com

(END) Dow Jones Newswires

December 07, 2016 09:01 ET (14:01 GMT)