Vatican reports first surplus after years of deficits
It is stated that the Vatican closed 2024 with a budget surplus; This signals a recovery after years of budget deficits that frustrated church leaders, including the late Pope Francis.
In his first budget report The Vatican said it had recorded a “significant improvement” in its accounts last year since 2022, achieving a surplus of 1.6 million euros ($2.8 million), mainly thanks to higher donations and strong investment gains.
He said he had managed to reduce the structural deficit (the difference between ordinary revenues and ordinary expenses) by 50 percent, but acknowledged that it still amounted to 44 million euros, underlining the long-term financial difficulties facing Pope Leo.
“The report highlights a clear recovery and a clear positive direction can be observed, while cautiously acknowledging that full fiscal sustainability is a long-term goal,” he said in a press release.
Francis, who died in April, had struggled for a long time to control the Vatican’s budget.
He has been fighting stiff resistance from his own cardinals in recent months as the Vatican tries to plug a gap in its finances and cuts cardinals’ salaries three times from 2021 to 2024.
Although the Vatican has not published its accounts for three years, the last set of accounts approved in mid-2024 included a deficit of 83 million euros, two sources told Reuters at the time.
Reuters could not independently verify the previous deficit figure.
As a microstate in Rome, the Vatican’s financial options are limited.
It does not issue debt, sell bonds or collect taxes.
The Vatican has three main sources of income: it receives donations, maintains an investment portfolio, and makes money from admissions to the Vatican Museums.
He also owns the Bambino Gesu Pediatric Hospital in Rome, which is a source of income.
The Vatican said revenues rose by 79 million euros last year, while expenses rose by 40 million euros, thanks to foreign donations and income from its hospital in Rome.
Financial management delivered “positive results” of €46 million, driven by capital gains from the sale of historic investments following the establishment of a new investment committee.
“This performance… played an important role in closing the operating deficit,” the statement said.
“After years of a stable or growing operating deficit, 2024 could be a turning point if the Vatican continues to reduce the operating deficit in the coming years,” he said.
“It is important to underline that this improvement is mainly due to the increase in donations,” he said.
“It will be necessary to confirm this progress in the coming years.”
The new report does not include data on growing liabilities in the Vatican’s pension fund, estimated by the Vatican’s finance chief in a media interview in 2022 to total 631 million euros.
Insiders believe liabilities have ballooned since then.
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