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ItalyItalian Republic · Repubblica Italiana

Government Budget
Fiscal Year 2024

Source: ISTAT, Eurostat, OECD
Total Revenue
€1.11T
50.4% of GDP
Deficit
−€73.9B
−3.4% of GDP
Total Expenditure
€1.18T
53.8% of GDP
Public Debt
134.9%
€2.97T
Budget breakdown

Revenue by Source

Max = €286B (Social Contributions) · Total €1.11T
Social Contributions
Social Security ContributionsINPS · employer ~23% + employee ~10%
€286B13% GDP
Direct — Individuals
IRPEF (Personal Income Tax)23–43% (3 brackets from 2024)
€241B11% GDP
Indirect
IVA (VAT)22% standard · 10% · 4% super-reduced
€158B7.2% GDP
Excise & Other IndirectFuel, tobacco, alcohol
€70B3.2% GDP
Corporate & Property
IRES (Corporate)24% flat
€54B2.5% GDP
IRAP (Regional)3.9% on production value
€27B1.2% GDP
Property & OtherIMU, TARI, inheritance
€45B2% GDP
Non-Tax
Fees, EU Funds & OtherRRF, ESIF, public enterprise income
€228B10.4% GDP
General Government DeficitNet borrowing
−€73.9B3.4% GDP
Total Revenue
€1.11T
Note: Very high social security contributions — the largest source. Shadow economy ~11–12% GDP. Tax-to-GDP: 42.8%.

Expenditure by Function

Max = €352B (Pensions) · Total €1.18T
Pensions (ESSPROS)
Public Pensions~16% GDP · 16M+ recipients
€352B16% GDP
Debt Service
Interest on Debt€85.6B on €2.97T debt
€85.6B3.9% GDP
Health
Healthcare (SSN)Universal · underfunded vs EU
€149B6.8% GDP
Public Services
General Public ServicesMinistries, Agenzia Entrate
€155B7% GDP
Education
EducationScuola, università, ricerca
€90B4.1% GDP
Social Protection
Other Social ProtectionNASpI, Assegno Unico, disability
€120B5.5% GDP
Defence & Security
National Defence~1.5% GDP · F-35 & naval
€33B1.5% GDP
Public Order & SafetyCarabinieri, Polizia
€40B1.8% GDP
Economic & Other
Transport & InfrastructurePNRR-boosted
€55B2.5% GDP
Economic AffairsSubsidies, energy, agriculture
€60B2.7% GDP
Environment & OtherR&D, culture, housing
€44B2% GDP
Total Expenditure
€1.18T
Note: Pensions at ~16% GDP, second highest in OECD. Superbonus housing credit still unwinding.
Context & explanations
👴

Pensions: ~16% GDP

Second highest in OECD after Greece. 16M+ recipients. Dini reform's slow phase-in continues.

~16% GDP · 16M+ recipients
🏠

Superbonus Fiscal Time Bomb

>€220B in credits drove 2023 deficit to 7.2%. Now unwinding.

Superbonus: >€220B
💸

Debt: Near-€3T Mountain

€2.97T (134.9% GDP). Interest: €85.6B (3.9% GDP).

Debt: €2.97T
📉

Deficit Halved to −3.4%

From −7.2% — mainly Superbonus accounting correction. Italy remains in EU EDP.

Improvement: 3.8 pps
⚕️

Healthcare: Underfunded

~6.8% GDP vs EU avg ~8%. Stark North-South divide.

Healthcare: ~6.8% GDP
🌑

Shadow Economy

~11–12% GDP by ISTAT. Tax gap ~€80–100B. E-invoicing improving compliance.

Shadow: ~11–12% GDP

Primary sources: ISTAT ESA2010; European Commission; OECD; Eurostat; Bank of Italy.

Methodology: General government consolidated. GDP: €2,199.6B. Currency: Euro. Italy is in EU EDP.