Vatican has a big budget problem

The world's smallest country has a big budget problem.

- (AP)

The Vatican doesn't tax its residents or issue bonds. It primarily finances the Catholic Church's central government through donations that have been plunging, ticket sales for the Vatican Museums, as well as income from investments and an underperforming real estate portfolio.

The last year the Holy See published a consolidated budget, in 2022, it projected 770 million euros ($878 million), with the bulk paying for embassies around the world and Vatican media operations. In recent years, it hasn't been able to cover costs.

That leaves Pope Leo XIV facing challenges to drum up the funds needed to pull his city-state out of the red.

Anyone can donate money to the Vatican, but the regular sources come in two main forms.

Canon law requires bishops around the world to pay an annual fee, with amounts varying and at bishops' discretion "according to the resources of their dioceses."

US bishops contributed over one-third of the $22 million (19.3 million euros) collected annually under the provision from 2021-2023, according to Vatican data.