Vatican in red two years running
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The rising costs of maintaining the Vatican contributed to the deficit.
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VATICAN CITY -- The Vatican has reported a budget deficit for the second consecutive year.
The shortfall of more than $15 million (£9.2 million) was blamed on rising personnel costs and an expanding diplomatic mission, Vatican officials said in their annual financial report published Wednesday.
The report listed 2002 revenues of $245 million (£150 million) and costs of $260 million (£160 million) for the deficit, which grew from $4 million (£3 million) in 2001.
The shortfalls come after more than eight years of budget surpluses caused by strong international markets and direct assistance from bishops around the world.
Before 1993, the Vatican had been losing money for more than 20 years.
The Vatican has high personal costs and faces extra costs for expanding diplomatic missions, said Cardinal Sergio Sebastiani, president of the Vatican's Prefecture for Economic Affairs, said in a statement.
Contributions and donations to the pope, known as Peter's Pence, increased by nearly 2 percent from 2001. There had been fears they would fall after a series of sex scandals involving priests.
More than $52 million (£32 million) was received in donations, which will go to charitable works in the developing world and relief aid, the statement said.
"The data confirms the generosity of many people of goodwill," the report said.
Vatican city-state also has a deficit of $18 million (£11 million) blamed on the fall in revenues and the running costs of Vatican Radio, the report said.
The Holy See's budget is smaller than some individual Catholic dioceses around the world. It employs nearly 3,000 people in Rome alone.
