Public Finance and Monetary Policy in Italy (1973–83): Trends and Problems

Abstract

Among industrial countries, Italy is perhaps the one with the worst record in public finance. A few data will suffice to illustrate the statement. In 1983, the public administrations’ expenditure went to 57.3 per cent of GDP. In the EEC countries the same figure averaged 52.0 per cent. As for total revenue, the data are: 45.5 per cent for Italy and 46.6 per cent for the EEC (Table 5.1). This greater expenditure corresponded to a lower revenue and, therefore, a much larger deficit: 11.8 per cent as against 5.4 per cent. The 1983 result is not an isolated one. In the period 1981–83, the Italian deficit averaged more than 12.1 per cent, while in the EEC it averaged less than 5.3 per cent.