The Italian State has total liabilities of 3,943 billion euros, a negative net worth and continues to live with one of the highest levels of public debt in the world. This is what emerges from General report of the State Administration for the financial year 2024approved with the Law no. 141 of 26 September 2025 (published in the Official Journal no. 229 of 2 October 2025).
The data, while taking into account the size of the country and the value of public assets, confirm that debt sustainability remains one of the main challenges for Italian public finance.
Income and expenses compared
According to the General Report, in 2024 the total revenue ascertained by the State amounted to 1,188.9 billion euros, divided as follows:
- tax revenues (direct and indirect taxes, VAT, excise duties, Irpef, Ires), which represent the largest portion, over 80% of the total;
- non-tax revenues, deriving from profits of public subsidiaries, royalties, penalties and various proceeds;
- revenue from disposal and depreciation of assets and debt collection;
- taking out loans, or new debt to cover financial needs.
On the opposite front, the total expenses committed in 2024 reach 1,176.9 billion euros, including:
- current expenses for salaries of public employees, pensions, healthcare, schools;
- interest on public debt;
- capital expenditure, intended for public investments, infrastructure and innovation;
- repayments of financial liabilities, i.e. repayment of maturing loans and government bonds.
A small surplus, but a large debt
Despite the scale of the figures, the 2024 budget closes with an operating surplus of 11.9 billion euros. An apparently positive figure, but which does not change the substance, since the mountain of public debt continues to grow and the interest that the State must pay remains very high.
In fact, at the end of the financial year, the financial deficit of the Treasury account amounted to 440.6 billion euros. This value represents the difference between liquid assets and overall commitments, and indicates how much the State must raise to cover its short-term liabilities.
And speaking of liabilities, according to the data attached to the document, for Italy as of 31 December 2024 they amount to 3,943 billion euros. To get an idea of the order of magnitude, this is a figure more than double the national GDP, which in 2024 stood at around 2,100 billion euros. The debt/GDP ratio is therefore over 188%, among the highest in Europe after Greece and Portugal.
What does it mean to have a negative net worth
One of the most significant elements of the report concerns the State’s net assets, which is negative. In accounting terms, that is, the liabilities far exceed the value of the assets (assets, equity investments, properties, credits and reserves). If the Italian state were a company, its equity capital would be eroded and a recapitalization would be needed to cover the accumulated losses.
This does not imply the risk of bankruptcy, because sovereign states operate in a completely different system from private companies, but it highlights the structural fragility of public finances and the difficulty of reducing debt without penalizing growth or social spending.
Because the debt grows despite the surplus
Italy often manages to close the budgets with a primary surplus (i.e. revenues greater than expenses, net of interest on the debt). However, the main problem is the weight of interests. In 2024, according to Mef estimates, the State spent over 90 billion euros just to pay interest to creditors.
Even with positive spending management, debt continues to increase due to accumulated financial burdens. The rise in interest rates decided by the ECB in recent years has further aggravated the situation, making it more expensive to refinance maturing securities.
With the 2026 Budget, the Government will therefore have to face a difficult balance: maintaining credibility on the markets and respecting the European budget rules (under review with the new Stability Pact) but, at the same time, find the resources for the aid and measures announced.
