The article examines the sustainability of Italy's government deficit from 1861 to 2020 using the fiscal theory of the price level. This theory looks at how fiscal policy can impact the price level, even if the central bank focuses on controlling inflation. The study finds changes in public debt and budget surplus, alternating periods of monetary and fiscal dominance, and evidence of bubbles in Italy's fiscal performance. The results show that fiscal, macroeconomic, and financial factors can significantly affect Italy's debt and budget balance.