Vatican says it’s low on reserves, seeks donations
The Vatican warned Friday that it has nearly depleted its financial reserves from past donations to cover budget deficits over recent years, as it urged continued giving from the faithful to keep the Holy See afloat and Pope Francis’ ministry going.
The Vatican published its 2021 budget in its latest effort at greater financial transparency amid a predicted 50 million euro budget deficit this year. The aim is to reassure donors that their money is being well spent, following years of mismanagement that is currently the focus of a Vatican corruption investigation.
Francis’ economy minister, the
Rev. Juan Antonio Guerrero Alves, said the coronavirus pandemic, which reduced donations as well as revenue from the shuttered Vatican Museums, would contribute to a projected 30 percent reduction in revenue to 213 million euros in 2021, from 307 million euros in 2019, the last year available.
He noted the Vatican had achieved significant cost-cutting during the lockdown last year, with drastically reduced travel, consultation fees, conference and assembly costs and putting off unnecessary real estate repairs and maintenance. In an interview with Vatican Media, Guerrero said he expected to further cut expenditures by 8 percent in 2021, without resorting to layoffs, which Francis opposes.
But even then, the 50 million euro deficit expected for 2021 will require once again dipping into reserves of past donations to cover expenses. Guerrero confirmed that in 2019, the Vatican used 27.2 million euros in Peter’s Pence reserves to cover its operating costs, on top of the
53.8 million euros in revenue to the Peter’s Pence fund that year.
The Peter’s Pence funds have come under scrutiny amid an investigation by Vatican prosecutors into the Secretariat of State’s 350 million euro investment in a London real estate venture, some of which was apparently funded by the Peter’s Pence.
Several Italian brokers and dealers, as well as some Vatican officials, are under investigation on suspicion they fleeced the Holy See of millions in fees.