The debt of Public Administrations corresponding to the month of September increased to reach its historic maximum of 1,637 billion euros, which represents an increase of 0.8% compared to the previous month, although the GDP ratio moderated to 104.4%, according to data published this Monday by the Bank of Spain.
On an interannual basis, it increased by 3.7% compared to the same month of the previous year, with 57.769 million euros more as a result of falling revenues and increasing expenses linked to the impact in recent years of the pandemic, the war in Ukraine and rising prices.
Using nominal GDP for the last four quarters, the ratio stood at 104.4% in the third quarter of 2024, representing a moderation of the debt weight of 0.9 points compared to the second quarter data, when it reached 105.3%.
The Executive’s estimates anticipate a downward trend in public debt in the years to come. In the medium-term structural budget plan, sent last month to Brussels, The government expects the debt-to-GDP ratio to increase from 102.5% in 2024 to 98.4% in 2027, to 90.6% in 2031 and to 76.8% in 2041. Although a downward trend is envisaged over the coming years, the executive’s projections do not specify when Spain will be able to reduce its debt below the “prudent” levels of 60% proposed by Brussels.
According to data from the Bank of Spain, the largest percentage of debt corresponds to the central statewith an increase in the third quarter of up to 1,490,099 million. In this sense, the autonomous communities and local corporations have maintained their debt figures practically stable, with a slightly lower amount for the autonomies (333.548 million) and slightly higher for the municipalities (23.207 million). The Social Security administrations have maintained their debt at exactly the same level, at 116.171 million euros.
