The tax burden is total taxes and social contributions divided by GDP. It rises when revenue grows faster than the economy, which can happen through higher rates, more employment or better collection, not only through tax increases.
The primary balance is the government's balance before interest payments on its debt. Italy collects more than it spends before interest, but interest payments turn that into an overall deficit of 3.1% of GDP. The primary balance is often watched to judge whether debt can be stabilised.
Italy's 2026–2028 budget law is worth about €22 billion and cuts the second income tax (IRPEF) rate, for incomes between €28,000 and €50,000, from 35% to 33%, according to the Ministry of Economy and Finance's summary of the main measures. The cut does not apply to incomes above €200,000.
Other measures include extra health funding of €2.4 billion for 2026, a higher "bonus mamme" for working mothers and a doubled financial transaction tax. The ministry says the package does not increase the deficit.
How much is the Italian state borrowing each month?
Italy's state sector had a borrowing requirement of €27.0 billion in September 2026, against €25.49 billion in September 2025, according to the Ministry of Economy and Finance's provisional figure of 1 October 2026.
The borrowing requirement is the cash the state needs to cover the gap between its payments and receipts in a month. It differs from the deficit measured in national accounts and swings from month to month with tax deadlines; in July 2026 the state had a surplus. Detailed figures are published by the State General Accounting Office.
Italy issued €8 billion of a new green government bond (BTP Green) maturing on 30 October 2038, according to the Ministry of Economy and Finance's press release of 22 September 2026. The bond pays an annual coupon of 4.40% and was sold at a gross yield of 4.492%.
Money raised through green BTPs is linked to public spending with environmental aims. The bond was placed through a syndicate of banks rather than an auction. The yield shows what investors required to lend to Italy for 12 years.
The figures below use one definition for every country, so they can differ from national figures.
What is Italy's debt to GDP ratio?
In 2025, general government gross debt in Italy was 137.1% of GDP, according to the IMF. Its high point since 2005 was 2020, at 154.4% of GDP; its low point was 2007, at 103.5% of GDP. Across Europe & Central Asia the middle value was 46.9% of GDP, and Italy placed 2nd highest of 51. Of 185 countries with 2025 data, 8th highest.
Does Italy's government borrow more than it raises?
The latest figure from the IMF, for 2025, is -3.1% of GDP, a deficit. Since 2005 it has ranged from -9.4% of GDP (2020) to -1.3% of GDP (2007). Europe & Central Asia median: -2.4% of GDP; Italy is 34th highest of 51. Of 188 countries with 2025 data, 107th highest.
What is Italy's government revenue?
The latest figure from the IMF, for 2025, is 48.1% of GDP. That is the highest since at least 2005. Across Europe & Central Asia the middle value was 41.3% of GDP, and Italy placed 9th highest of 50. Of 187 countries with 2025 data, 20th highest.
How big is Italy's government spending as a share of GDP?
51.2% of GDP: that is general government spending in Italy for 2025, according to the IMF. Since 2005 it has ranged from 46.6% of GDP (2007) to 56.8% of GDP (2020). It is 6th highest of 50 in Europe & Central Asia, where the median is 43.3% of GDP. World rank, highest first: 15th of 186.
How much tax does Italy collect?
The latest figure from the IMF, for 2024, is 25.6% of GDP. It is the top of the series, which starts in 2005. Europe & Central Asia median: 20.8% of GDP; Italy is 7th highest of 42. World rank, highest first: 11th of 92.
What is Italy's military budget as a share of GDP?
1.9% of GDP: that is military spending in Italy for 2025, according to SIPRI. It is the top of the series, which starts in 2005. Europe & Central Asia median: 2.0% of GDP; Italy is 32nd highest of 46. Worldwide: 67th of 149.