in 2015 the deficit/GDP ratio of Italy was equal to 2,6%, a decrease of 0,4 percentage points compared to that of 2014. This is certified by Istat in the public accounts report published on Monday. The statistical institute also specifies that in the fourth quarter of 2015 the net debt of public administrations in relation to GDP was equal to 2,2%, down by 0,2% on an annual basis.
Also in the fourth quarter – continues the note from Istat – the primary balance (debt net of interest expense) was positive for 8.112 million euro. The ratio of the surplus to GDP was 1,9%, 0,3 percentage points lower than that recorded in the fourth quarter of 2014. The current balance in the fourth quarter of 2015 was positive and amounted to 9.732 million euro with an incidence on GDP of 2,3% (0,8% in the corresponding quarter of the previous year).
The estimates of the quarterly aggregates of the general government account – continues the note – are consistent with the version sent to Eurostat on 31 March, as part of the notification in application of the Protocol on the Excessive Deficit Procedure. Compared to the one published last March 1, the account presents some slight adjustments for each of the years 2012-2015 and a significant punctual revision for 2015. The latter concerns the treatment, recently agreed with the European statistical authorities, of the related transactions the resolution of the crisis of four banks, according to the decisions taken on 22 November by the Italian Government and the Bank of Italy.
In particular, the resources flowing from the Italian banking system to the National Resolution Fund (equal to approximately 2,3 billion euro) were recorded under indirect taxes (specifically 'other taxes on production'), while the funds transferred by the Fund itself to cover the losses of the commissioned banks (amounting to approximately 1,7 billion) were accounted for within capital account outlays. After this revenue revision, the tax burden is revised upwards by 0,2 percentage points.
as to tax burden, in 2015 it was equal to 43,5%, against 43,6% in 2014. Last year total expenditure increased by 0,1% compared to the previous year and the corresponding ratio to GDP was equal to 50,5% (51,2% in 2014). Total revenue, on the other hand, increased by 1%, with an incidence on GDP of 47,9% (-0,3 percentage points compared to 2014).
In the fourth quarter alone, total outflows increased in trend terms by 0,6% and their incidence on GDP was 57,1% (compared to 57,7% recorded in the same period of the previous year). Current outflows decreased by 1,4% and capital account outflows increased by 25,5%. In the fourth quarter, total revenues increased in trend terms by 0,9% with an incidence on GDP of 54,9%, 0,3 percentage points lower than in the corresponding quarter of 2014. The tax burden was equal to 50,3%, unchanged from the same quarter of the previous year.
