Notification of general government deficit and debt according to the excessive deficit procedure - Years 2018-2021

In this release, Istat provides government deficit and debt data based on figures reported in the first 2022 notification by Italy to the EC for the years 2018-2021, for the application of the excessive deficit procedure (EDP). This notification is based on the ESA 2010 system of national accounts. No reservations have been expressed by Eurostat on the data reported by Italy.

The data published today are the same already disseminated on 5 April (Quarterly non-financial accounts of General Government, income and savings of households and profits of non-financial corporations).

Istat also provides information on the underlying government sector accounts, as well as on the contribution of deficit/surplus and other relevant factors to the variation in the debt level (stock-flow adjustment).

According to the Protocol on the excessive deficit procedure annexed to the EC Treaty, government deficit (surplus) means the net borrowing (net lending) of the whole general government sector (central government, state government, local government and social security funds). It is calculated according to national accounts concepts (European System of Accounts, ESA 2010). Government debt is the consolidated gross debt of the whole general government sector outstanding at the end of the year (at face value). For further references see the Manual on government deficit and debt – Implementation of ESA 2010, 2019 edition.

The government deficit to GDP ratio decreases from 9.6% in 2020 to 7.2% in 2021. The primary balance as a percentage of GDP is -3.7% in 2021, up by 2.4 percentage points with respect to 2020.

The government debt to GDP ratio is 150.8% at the end of 2021, decreasing of 4.5 percentage points with respect to 2020. Data concerning the general government debt are compiled and disseminated by the Bank of Italy.