Where does Italy’s public deficit come from?
Revenue and spending of Italy’s central government, local authorities and social security since 1995: very heavy pensions, an old debt, the “Superbonus”, and a comparison with France.
Scope: Italian general government (central government, local and regional authorities, social security), national accounts, Eurostat data. · Data as of Oct 30, 2026.
Key takeaways
- In 2025, Italian general government spent €1,157bn against €1,088bn of revenue: a deficit of €70bn, or 3.1% of GDP. Debt stands at 136.7% of GDP.
- Pensions are by far the largest item: 16.3% of GDP in 2024, against 14.7% in France, and +2.1 points since 2007. People aged 65+ make up 24.3% of the population, one of the highest shares in Europe.
- The weight of an old debt: interest costs 4.0% of GDP in 2024, twice the French level (2.0%), even though it fell from 4.8% in 2007. Excluding interest, Italy’s accounts are in slight surplus (+0.6 point of GDP in 2024).
- Covid and the “Superbonus”: the deficit reached −9.4% of GDP in 2020, then −8.9%, −8.1% and −7.1% from 2021 to 2023, before returning to −3.4% in 2024. Tax credits for home renovation, recorded as spending, cost about €153bn over 2020–2023 according to the Chamber of Deputies.
- Compared with France, Italy spent 6.7 points of GDP less in 2024 (50.3% against 57.0%) and levied 4.3 points less (46.9% against 51.2%). It spends more on pensions (+1.5) and interest (+2.0), but far less on health (−2.3), family, housing and exclusion (−2.1), environment and culture (−1.4), sickness and disability (−1.1) and education (−1.0). It relies more on income tax (+3.0) and less on social contributions (−3.9).
Revenue and spending, year by year
For each year: left bar = revenue (grey), right bar = spending (colours), stacked by type. The gap between the two bars is the deficit. Tap an item in the legend to isolate it. Spending by function is published from 2001 to 2024; the “by nature” view covers 1995–2025.
What widened (or narrowed) the deficit
Change of each item in points of GDP between two years. Spending that rises, or revenue that falls, widens the deficit (bar to the left).
Public balance: −1.3% of GDP in 2007, −3.4% in 2024, a change of −2.1 points. Contribution of spending: −3.7 pt; of revenue: +1.6 pt.
- Pensions
- Health
- Other social benefits
- Interest on debt
- Education
- Economic affairs
- Other public spending
- Revenue
Detail by item · 2007 → 2024
| Detail by item | Side | 2007 | 2024 | Change (pt) | Effect on balance (pt) |
|---|---|---|---|---|---|
| Pensions (old age + survivors) | Spending | 14.21 | 16.27 | +2.06 | −2.06 |
| Family, housing benefits, social exclusion | Spending | 1.14 | 2.28 | +1.14 | −1.14 |
| Economic affairs (transport, business support, energy) | Spending | 3.95 | 5.08 | +1.13 | −1.13 |
| Other taxes on production (property, energy, alcohol, tobacco…) | Revenue | 8.43 | 7.44 | −0.99 | −0.99 |
| Corporate income tax | Revenue | 3.12 | 2.65 | −0.47 | −0.47 |
| Unemployment | Spending | 0.46 | 0.92 | +0.46 | −0.46 |
| Environment, community amenities, culture | Spending | 2.07 | 2.51 | +0.44 | −0.44 |
| Sickness and disability benefits | Spending | 1.53 | 1.71 | +0.17 | −0.17 |
| Defence, police, justice | Spending | 2.99 | 3.05 | +0.05 | −0.05 |
| Health (hospitals, outpatient care, medicines) | Spending | 6.64 | 6.61 | −0.03 | +0.03 |
| Other current taxes (wealth…) | Revenue | 0.47 | 0.51 | +0.04 | +0.04 |
| Social contributions | Revenue | 12.53 | 12.58 | +0.05 | +0.05 |
| Capital taxes (inheritance…) | Revenue | 0.02 | 0.08 | +0.06 | +0.06 |
| Education | Spending | 4.46 | 4.03 | −0.43 | +0.43 |
| General services (excluding debt) | Spending | 4.31 | 3.86 | −0.45 | +0.45 |
| VAT | Revenue | 5.89 | 6.57 | +0.68 | +0.68 |
| Other revenue (sales, property income, transfers) | Revenue | 4.01 | 4.69 | +0.68 | +0.68 |
| Interest on debt | Spending | 4.84 | 3.97 | −0.87 | +0.87 |
| Household income taxes | Revenue | 10.81 | 12.38 | +1.57 | +1.57 |
| Total revenue | Revenue | 45.27 | 46.90 | +1.63 | +1.63 |
| Total spending | Spending | 46.60 | 50.29 | +3.69 | −3.69 |
| Balance | Balance | -1.33 | -3.39 | −2.06 | −2.06 |
The drivers
Pensions and health
Public spending on pensions (old age + survivors) and health, % of GDP.
- Pensions · 16.3% (2024)
- Health · 6.6% (2024)
The demographic driver
Share of people aged 65 and over, on 1 January (%).
- Aged 65+ · 24.7% (2025)
Public balance
% of GDP. Negative = deficit. The Maastricht 3% threshold is dashed.
- Balance · −3.1% (2025)
Public debt
% of GDP, Maastricht definition, end of year.
- Debt · 136.7% (2025)
What the debt costs
Interest paid by general government, % of GDP.
- Interest · 4.0% (2024)
Who carries the deficit?
Balance by level of government, % of GDP. Regions are counted with local government.
- Central government · −3.5% (2025)
- Local and regional · 0.0% (2025)
- Social security · 0.5% (2025)
Italy and France
Same Eurostat accounts, same scope (general government), in % of GDP. To the right of a gap chart, Italy is above France.
Public spending, % of GDP
- Italy · 51.1% (2025)
- France · 57.3% (2025)
Public revenue, % of GDP
- Italy · 48.0% (2025)
- France · 52.2% (2025)
Public balance, % of GDP
- Italy · −3.1% (2025)
- France · −5.1% (2025)
Public debt, % of GDP
- Italy · 136.7% (2025)
- France · 115.7% (2025)
Structure of revenue and spending
One bar per country and side, stacked by item, % of GDP.
- Pensions
- Health
- Other social benefits
- Interest on debt
- Education
- Economic affairs
- Other public spending
- Social contributions
- Household income taxes
- VAT
- Other taxes on production
- Corporate income tax
- Other revenue
Where Italy spends and levies more (or less) than France
Italy minus France, in points of GDP, same year. To the right, Italy is higher.
- Italy − France · 2024
Spending by nature
What public money pays for: wages, benefits, purchases, investment… Purchased benefits in kind (reimbursed care…) are much smaller in Italy than in France: care is organised differently, which makes the comparison by nature delicate.
- Cash benefits (pensions, allowances)
- Purchased benefits in kind (reimbursed care…)
- Public employee compensation
- Operating purchases
- Interest on debt
- Subsidies
- Investment
- Other transfers
Italy − France gap by type of spending, points of GDP
- Italy − France · 2025
Yearly data
Show the table of revenue, spending, balance and debt by year
| Year | Revenue | Spending | Balance | Balance (% of GDP) | Debt (% of GDP) |
|---|---|---|---|---|---|
| 2025 | €1,088bn | €1,157bn | −€70bn | −3.1% | 136.7% |
| 2024 | €1,037bn | €1,112bn | −€75bn | −3.4% | 134.3% |
| 2023 | €997bn | €1,148bn | −€152bn | −7.1% | 134.0% |
| 2022 | €936bn | €1,097bn | −€161bn | −8.1% | 138.4% |
| 2021 | €869bn | €1,033bn | −€164bn | −8.9% | 146.1% |
| 2020 | €792bn | €948bn | −€156bn | −9.4% | 154.7% |
| 2019 | €848bn | €874bn | −€27bn | −1.5% | 134.2% |
| 2018 | €820bn | €860bn | −€39bn | −2.2% | 134.5% |
| 2017 | €807bn | €852bn | −€44bn | −2.5% | 134.0% |
| 2016 | €794bn | €835bn | −€41bn | −2.4% | 134.5% |
| 2015 | €795bn | €836bn | −€41bn | −2.5% | 135.0% |
| 2014 | €784bn | €830bn | −€46bn | −2.8% | 135.0% |
| 2013 | €779bn | €826bn | −€47bn | −2.9% | 132.0% |
| 2012 | €776bn | €824bn | −€49bn | −3.0% | 126.1% |
| 2011 | €754bn | €813bn | −€58bn | −3.5% | 119.3% |
| 2010 | €738bn | €806bn | −€67bn | −4.2% | 118.9% |
| 2009 | €729bn | €809bn | −€80bn | −5.1% | 116.1% |
| 2008 | €742bn | €785bn | −€42bn | −2.6% | 105.8% |
| 2007 | €734bn | €756bn | −€22bn | −1.3% | 103.5% |
| 2006 | €686bn | €742bn | −€56bn | −3.6% | 106.3% |
| 2005 | €644bn | €705bn | −€61bn | −4.1% | 106.2% |
| 2004 | €630bn | €680bn | −€50bn | −3.5% | 104.7% |
| 2003 | €612bn | €657bn | −€45bn | −3.2% | 105.1% |
| 2002 | €591bn | €630bn | −€39bn | −2.9% | 105.9% |
| 2001 | €575bn | €617bn | −€42bn | −3.2% | 108.5% |
| 2000 | €547bn | €577bn | −€30bn | −2.4% | 108.7% |
| 1999 | €533bn | €554bn | −€21bn | −1.8% | 113.1% |
| 1998 | €512bn | €546bn | −€34bn | −3.0% | 113.9% |
| 1997 | €509bn | €542bn | −€33bn | −3.0% | 116.5% |
| 1996 | €463bn | €532bn | −€68bn | −6.6% | 118.9% |
| 1995 | €398bn | €463bn | −€65bn | −7.2% | 119.1% |
Sources and method
- Eurostat, government finance statistics. Total revenue and spending, detail of taxes and contributions, spending by nature, balance by level of government. These are ISTAT national accounts reported to Eurostat, general government scope (S13), and the same tables as for France.gov_10a_main
- Eurostat, spending by function (COFOG). Pensions = old age (GF1002) + survivors (GF1003); health = GF07; interest = public debt transactions (GF0107). Italian detail published from 2001 to 2024.gov_10a_exp
- Eurostat, GDP, debt and population. GDP and deflator, Maastricht debt, share of people aged 65+.nama_10_gdpgov_10dd_edpt1demo_pjanind
- Chamber of Deputies. Estimated cost of the “Superbonus” and other home-renovation tax credits (about €153bn over 2020–2023).Camera dei deputati — Superbonus
- Method. Constant euros: current euros adjusted by the GDP deflator (euros of the latest year). Balance excluding interest = public balance + interest (COFOG). The small gap between the COFOG total and total spending is put in “General services”.
- Further reading. ISTAT, Parliamentary Budget Office (UPB), Bank of Italy, Ministry of Economy and Finance.ISTATUfficio parlamentare di bilancioBanca d’ItaliaMEF