Sharply declining deficit, skyrocketing tax burden. This is the picture that emerges from the latest data on public finances published by Istat. According to the statistical institute, last year the net borrowing of general government, measured in relation to GDP, fell to -2,9%, an improvement of 0,8 percentage points compared to that recorded in 2011 (- 3,8%).
In the fourth quarter of 2012 alone, the primary balance (debt net of interest expense) was positive and equal to 17.900 million euros (against +11.677 million euros in the same period of 2011). In 2012 as a whole, in terms of incidence on GDP, the positive primary balance was equal to 2,5%, an improvement of 1,3 percentage points compared to 2011.
Also in the fourth quarter of 2012, the current balance (savings) was positive and equal to 8.177 million euros, going up compared to the corresponding quarter of the previous year, when it was negative by 3.234 million euros. The impact on GDP was +2% (-0,8% in 2011). Overall, in 2012 the current balance in relation to GDP was -0,3% (-1,4% in 2011).
As for the tax burden, it reached 52% in the fourth quarter of 2012, with an increase of 1,5 percentage points compared to the same quarter of the previous year. On average for the whole year, the figure is equal to 44%, up by 1,4 percentage points compared to the previous year.
Total revenues, according to Istat, have grown, in trend terms, by 2,4%; their impact on GDP was 56,3%, up from 54,5% in the corresponding quarter of 2011.
Overall in 2012, total expenditure increased by 0,7% compared to the previous year, equal to 50,6% of GDP (49,9% in 2011); total revenues grew more than expenditures (+2,5%), with an incidence on the GDP of 47,7% (46,2% in 2011). The tax burden at 44% in 2012 is the highest level since at least 1990, the beginning of the homogeneous series.
