The Holy See publishes most transparent budget ever

Call it “operation transparency”. 

The Vatican’s Secretariat for the Economy on March 12 published the most detailed report ever of its annual budget. But, unfortunately, it’s contents are not a cause of jubilation. 

The 2021 fiscal year -- which accounts for some 310 million euros in expenditures -- is expected to finish some 50 million euros in the red, due largely to the negative effects of the COVID-9 pandemic.

The shortfall will be partially offset, by 30 million euros, thanks to funds taken from Peter’s Pence. That fund is made up of contributions from Catholics around the world, intended to help the pope carry out his mission and charitable works. 

This year’s Peter’s Pence collection, which will be taken up in parishes on the weekend of June 26-27, is expected to be 47 million dollars.

The Secretariat of State managed this fund until earlier this year. But since this was beyond the usual Vatican channels and controls, its use of its money had given rise to scandals.

The Holy See's losses are expected to be €80 million, that’s an eight-fold increase over 2019, the last year for which figures are available.

Income down 20%, expenses down 8%

Revenues are expected to fall by 20% in 2021 to a total of 260 million euros.

Almost all of the revenue loss is due to a 40% drop in the Holy See's own income, especially from the Vatican Museums, which were closed to the public for much of the year.

There’s also been a drop in revenue from financial investments and a drop in income from real estate and commercial rents from Vatican-owned buildings.

In contrast, donations have hardly declined. The new closure of the museums as of March 15, 2021, is expected to further increase losses.

To cope with this shortfall, the Holy See has planned to cut its operating expenses by 8% to 310 million euros.

The decrease will be much greater (14%) if personnel costs are excluded. They currently make up half of the expenses. 

Officials of the Roman Curia have been urged to cut back on travel and conferences and to postpone the purchase of non-essential items.

No "reduction in service to the pope's mission"

"Three-quarters of the expenses are dedicated to the apostolic mission," the Holy See statement said. 

Some 22% of these are used to communicate the pope’s message, 20% to ensure his presence in the world through the apostolic nunciatures, 17% for charitable actions throughout the world, and 16% to support local Churches that are facing difficulties or have special needs concerning evangelization.

Jesuit Father Juan Antonio Guerrero Alves, the 61-year-old prefect of the Secretariat for the Economy, insisted that "savings have been made without diminishing service to the pope's mission".

He also pointed out that "the salaries and positions of the (Vatican) employees" have been protected.

Using the reserves

"If we were a company or an NGO, we would have reduced services and restructured our staff," he said.

"If we were a state like any other, we would have increased our debt and taken fiscal measures. In our case, if donations do not increase, we can only save as much as possible and use our reserves," the Spanish Jesuit said.

He predicted that revenues from property rentals, economic activities and services "will gradually recover when the economic situation is more stable".

The Vatican Museums will be able to open without restrictions and there will be a normal influx of tourists again.

But no matter what happens, Father Guerrero said the Vatican will figure out how to move forward.

"A Church without financial reserves would continue to carry out its mission of evangelization with the creativity of the Spirit, as has already happened in history."