The Vatican predicts a deficit of nearly 50 million euros due to COVID losses

The Vatican said Friday it expected a deficit of nearly 50 million euros ($ 60,7 million) this year due to the losses related to the pandemic, a figure that rises to 80 million euros (97 million dollars) if the donations of the faithful are excluded.

The Vatican has released a summary of its 2021 budget which was approved by Pope Francis and by Economy Council of the Holy See, a commission of external experts who oversee the Vatican's finances. The publication was believed to be the first time the Vatican has released the expected consolidated budget, part of Francis's push to make Vatican finances more transparent and accountable.

The Vatican has been running a deficit in recent years

Reducing it to 11 million euros in 2019 from a 75 million euros hole in 2018. The Vatican said Friday it expected the deficit would have grown to 49,7 million euros in 2021, but which envisaged compensating the deficit with reserves. Francis in particular wanted to release to the faithful information on Peter's collections, which are announced as a concrete way to help the pope in his ministry and works of charity, but are also used to manage the bureaucracy of the Holy See.

The funds were examined amid a financial scandal over how those donations were invested by the Vatican secretariat of state. Vatican prosecutors investigating the office's 350 million euros investment in a London real estate firm said some of the money came from Peter's donations. Other Vatican officials contest the claim, but it has nonetheless become a cause for scandal. Francis defended the Vatican investment of Peter's funds, saying that any good administrator invests money wisely rather than keeping it in a "drawer".

According to a statement from the Council for the Economy, the Vatican received approximately 47,3 million euros in revenue from Pietro's collections and other dedicated funds, and made € 17 million in grants, leaving a network of around € 30 million. The quantity of Pietro's collections is very low compared to ten years ago. In 2009 the collection reached € 82,52 million, while the collection reached € 75,8 million in 2008 and € 79,8 million in 2007. It is believed that sexual abuse and financial scandals in the church are at least partly responsible decline.

Vatican's overall operating profit fell 21%, or 48 million euros, last year. Its revenue took a hit due to the closure of the Vatican Museums due to the pandemic, which saw only 1,3 million visitors in 2020 compared to nearly 7 million the previous year. The Museums, along with the Vatican's real estate, provide most of the Holy See's liquidity.