2023-11-18 07:04:56
375,000 million. That is the debt that the central Administration has accumulated since the recently inaugurated president Pedro Sánchez took office in La Moncloa in his first term back in 2018. The public hole does not stop widening nor does it step on the brakes and September marked its historical record, for reach 1,578 billion euros. Only in the last 30 days, the Central Administration has increased its red numbers by 15,410 million and raised its debt to the maximum known of 1,477 billion. A figure that is small if the comparison is made with the months that have passed this year.
From January to September, the debt generated directly by the Government of Pedro Sánchez, that is, by the State, rises to 87,625 million, 6.3% more compared to the annual close of 2022. In an interannual rate this increase was 4.9%, that is, 73,019 million, which has occurred as a consequence of “lower income and higher expenses”, and due to the inflationary pressure exerted by “the escalation of prices”, ministerial sources explained.
Public Debt EvolutionThe Reason
Having added those 375,000 million to the State’s debt in just five years means that the public coffers have assumed a debt of 194 million euros per day, or in other words, that each of the 48 million Spaniards has accumulated without realizing it. a debt of almost 8,000 euros just with what the Government has spent. But in the total calculation of the debt accumulated by all Public Administrations, the debt is close to 33,000 euros per capita.
In the case of the Social Security debt, it remains at 106,172 million, the same figure as the previous month, although the interannual growth reaches 6,980 million, with an increase of 7% due to the loans granted by the State to the General Treasury of Social Security to finance its budget imbalance. A percentage that will take off again before the end of the year, when the State has to pump in money again to pay double pension payments at Christmas.
These are data advanced by the Bank of Spain, which points out that in the last month the debt has grown in relative terms by 1%, although the ratio over GDP moderated to 109.9% compared to the figure for the second quarter, when it reached 111.2%, but only thanks to economic growth, not to cost containment.
The Budget Plan sent to Brussels sets optimistic forecasts for economic growth – Nadia Calviño’s team expects the economy to grow by 2.3% in 2023 and 2% in 2024 -, which they assure will allow them to reduce the debt/GDP ratio up to 108.1% in December, advancing by one year the objective of placing it below 110% to maintain that rate of reduction during the next year to 106.3%, which would mean a reduction of 14 points with respect to its value in 2020. But this forecast is made based on a boost in activity that is not believed from Brussels, after lowering the figure for 2024 a few days ago by three tenths, to 1.7%, which makes it very difficult to reach the forecast figure .
Regarding the territorial administrations, the autonomous communities reduced their debt by 1.7%, to 320,315 million, 5,601 million less than in August. Local corporations experienced a slight increase of 0.3%, up to 23,331 million. Consolidation in all Public Administrations – that is, the debt held by the different subsectors – increased by 5.7% compared to the previous year, up to 326,000 million.
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