2023-09-19 11:35:13
The public debt was barely reduced by 0.7% in July, 10,642 million euros, but it has been above 1.5 trillion for six consecutive months. The Bank of Spain quantifies the total amount of debt of the Public Administrations at 1,558 billion, whose debt volume grew by 4.8% compared to 1,486 billion a year ago, which translates into an increase of 71,486 million euros, as a consequence of lower income, higher expenses derived from the pandemic crisis and the war in Ukraine and the rise in prices.
The banking supervisor justifies this monthly decrease by the fall in the State’s debt, which in this case has joined that of the autonomous communities and the city councils. Thus, the State debt stood at 1,390 billion euros in July, which represents a decrease of 0.5% and 6,557 million euros less in just one month, while in the last twelve months it has increased by 6 ,3%. This figure represents an increase of 5.8% compared to last year, which translates into about 77,937 million. The State accounted for most of the hole, with a balance of 1,390 billion, which is almost 83,000 million more than a year ago (+6.3%).
For their part, the autonomous communities have reduced their debt compared to the month of June to 325,834 million, some 1,414 million euros less (-0.4%), but in an interannual rate they experience a rebound of 3.7%, which It would be 11,488 million more. As for local corporations, their debt at 23,495 million, after experiencing a month-on-month decrease of almost 300 million. Compared to July of last year, its debt rose by almost 400 million (+1.7%).
The Social Security debt has remained more or less stable in the seventh month of the year. This stood at 106,169 million, just 5 million less than the previous month. In annual comparison, however, it has not stopped growing and has increased by 6,984 million, 7% more. The Bank of Spain explains that the increase in Social Security debt in the last year is due to the loans granted by the State to the organization’s General Treasury to finance its budget imbalance.
In this monthly preview, no data is offered on the weight of debt over GDP -measured as a percentage- and the publication of this figure for the second quarter is expected at the end of this month -on September 29-. As set by the Executive in the Stability Program in April, the forecast for the debt in 2023 was 111.9% of GDP and the year in which it was estimated that it would fall below 110% (109.1%) was in 2024. The update by the INE of the GDP data for the years 2020, 2021 and 2022, from the acting Government, the objective of falling below 110% has been brought forward to 2023, after reviewing the rise in the growth of the Spanish economy in 2022, from 5.5% to 5.8%, and raised the evolution of GDP in 2021 from 5.5% to 6.4%.
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