Istat: deficit improves to 2% of GDP in the second quarter of 2026

Istat reported that in the second quarter of 2026, the deficit of the Public Administrations stood at 2% of the Gross Domestic Product, an improvement compared to the previous quarter. Overall, in the first six months of the year, net borrowing was -5.4% of GDP, a better figure than the -5.7% recorded in the same period of 2025.

In the second quarter, total revenues increased by 4.5% year-on-year, with their share of GDP rising to 48.9%. At the same time, total expenditures also grew by 4.2%, reaching 50.9% of GDP. The tax burden, calculated over the first two quarters, stood at 40.2% of GDP, an increase of 0.4 percentage points compared to 2025.

The public deficit, or fiscal deficit, represents the difference between what the state spends and what it collects through taxes and other revenues in a given period. When expenditures exceed revenues, the state incurs debt by issuing government bonds. This indicator is crucial for a country's economic stability and is monitored by national institutions like Istat and international bodies such as the European Union.

The Italian situation has been characterized for years by a high public debt, inherited from decades of spending exceeding revenues. To contain it, governments must pursue fiscal policies aimed at reducing the deficit. Current data show a slight short-term improvement, but the increasing tax burden indicates a higher levy on taxpayers. The path to a lasting stabilization of the debt remains complex and depends on economic growth and public finance choices.