Friday, March 24

Public debt closes 2021 at 118.7% of GDP, below the Government’s forecasts

The debt of public administrations ended the year 2021 at 1.42 trillion euros. The weight of public liabilities closed at 118.7%, which represents a slight decrease compared to the end of 2020, in which the pandemic triggered the debt to 119.9%, as reported by the Bank of Spain this Thursday and has claimed the Ministry of Economic Affairs in a statement.

The data also supposes a lower closing than the one foreseen in the budget plan that the Government sent to Brussels in October within the process of preparing the public accounts for this year. In it, the Executive indicated that the debt would close at 119.5%, with a much lower cut than the one that has finally occurred. The Ministry has indicated in its statement that this greater than expected decrease is due to the growth of the economy in the second half of the year. “This good evolution makes a reduction in the debt ratio compatible with a policy of continued support for the most affected sectors and households,” he defends.

Despite the decline in the peso over GDP, the truth is that the absolute debt closed the year on the rise. The 1.42 trillion euros in which the year ended represents an increase of 6.1% despite the data at the end of December 2020. It does represent a slight decrease compared to the maximum reached in September last year, when the figure It came to exceed 1.43 billion euros.

The bulk of the debt comes from the State. This administration ended the year with a liability of 1.24 billion euros, with a year-on-year increase of 6.8%, while the other units of the central administration closed with a balance of 54,000 million, with a significant decrease of 7, 8%. Social Security closed with a debt of 99,000 million euros, which represents an increase of 16.2%. The Communities reached 313,000 million euros, 2.9% more, and local corporations, 22,000 million, with a slight increase of 0.8%.