Italian public debt hits a new record. According to what the Bank of Italy revealed in the latest dedicated report, in August the Italian public debt increased by 25.4 billion compared to the previous month, reaching 3,082.2 billion euros.
Since November 2024, it is the seventh consecutive time that the 3 trillion mark has been exceeded and in relation to the population it would be equal to a debt of 52 thousand euros per capita.
The Bank of Italy report
In the monthly report on the needs and debt of the Italian public administrations, Palazzo Koch explains that the growth is due to various factors, mainly the increase in the Treasury’s liquid assets (25.3 billion more, to 72.1 billion) and the overall effect of discounts and premiums on the issue and reimbursement of government bonds, the revaluation of inflation-indexed bonds and the change in exchange rates (0.7 billion), minimally offset by the cash surplus (0.6 billion).
If the debt of the social security institutions has not changed and that of the local public administrations has decreased by approximately 0.2 billion, that of the central administrations has instead increased by 25.6 billion.
The share of debt of the Bank of Italy decreases, from 19.5% in July to 19.2% in August, as does that held by investors abroad, slightly decreasing to 33.3%, while the share of residents increases, from 14.1% to 14.3%, held above all by families and non-financial businesses.
The average residual life of the debt remains the same as in July: 7.9 years.
Bank of Italy reveals in the report that in August tax revenues accounted for in the state budget decreased by 6.4 billion (-10.2%) compared to the same month of 2024, reaching 56.1 billion.
A figure due, explains the Bank of Italy, also to the effects of the temporal inhomogeneity in some payment deadlines. Compared to the first eight months of 2025, tax revenues increased by 2.7% (10 billion) to an amount of 381.7 billion.
The debt/GDP ratio
On Italian public debt, the International Monetary Fund records an increase in the ratio to GDP to 136.8%, from 135.3% in 2024.
According to IMF estimates, the debt/GDP will grow further in 2026, to 138.3%, while next year our country will be able to bring the deficit/GDP back below the 3% threshold envisaged by the Stability Pact, to 2.8%. This year the budget deficit is expected to be 3.3%, compared to 3.4% last year.
The Fund cites Italy together with Canada, China, France, Japan, the United Kingdom and the United States among the countries with high debt, but with “moderate” budget risks. Globally, public debt will reach its highest level since 1948 in 2029, at 100% of GDP.
