FACTBOX: Italy election contenders' policy promises

(Reuters) - Conservative billionaire Silvio Berlusconi and centre-left leader Walter Veltroni are the leading candidates to be Italy's next prime minister.

Following are some of the proposals they made before voting began in Italy's parliamentary election on Sunday.

ECONOMY

BERLUSCONI: Cut income tax, housing tax, corporate tax and value-added tax, gradually taking tax revenues as a proportion of gross domestic product down to 40 percent from the record 2007 level of 43.3 percent.

* Raise state pensions, offer "baby bonus" to boost the birth rate and give rental aid to young couples and low earners.

* Attack tax evasion, cut "excessive" public spending and sell or rent up to 700 billion euros ($1.1 trillion) of public property (firms and real estate) to cut the deficit and debt.

VELTRONI: Cut income tax by one percentage point per year for three years, lower taxation of bank deposits, raise child benefit and set minimum wage of 1,000 euros per month for temporary workers.

* Provide tax benefits to pensioners and spending vouchers of at least 500 euros per year to 3 million low income families to help cope with rising inflation.

* Tackle tax evasion and sell off real estate. Cut public spending excluding interest on debt by 0.5 percentage points of GDP in first year and by a full point in each of the next two.

CRIME/SECURITY

BERLUSCONI: Increase the number of police on the streets to curb "common crimes" like house and car theft and drug pushing.

* Tax incentives to shop owners to install alarms and create higher jail sentences for violence against the police.

* Expel all illegal immigrants, and crack down on gypsy camps and "centers linked to the preaching of Muslim fundamentalism."

VELTRONI: Raise the number of police on the street and increase closed circuit TV cameras. Increase police powers to investigate Mafia involvement in construction contracts.

* Increase the duration of residency permits for immigrants but guarantee that expulsion orders for illegal immigrants are really carried out.

FOREIGN POLICY

Neither party cites foreign policy among their main priorities but Berlusconi has always been a staunch ally of the United States while Veltroni would be expected to place greater emphasis on Italy's relations with France and Germany.

BERLUSCONI: May send more troops to Afghanistan and military instructors to Iraq. Aims to change the rules of engagement for Italy's troops in Lebanon to help them better keep the peace.

VELTRONI: Italy must maintain its missions in Afghanistan and Lebanon under broadly the same terms as under the Romano Prodi government. Rules out sending any new contingent to Iraq.