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Public Debt Grows In A Single Month By 23477 Million Euros

The effect of the pandemic on public accounts continues to be devastating. The figures are eloquent: in a single month, in June, the public debt of all the administrations (Central, autonomous bodies, autonomous communities, local corporations and Social Security) increased by 23,477 million euros, a 1.7% rate monthly , with which it chains two consecutive months to the rise, according to the data published this Tuesday by the Bank of Spain. In the first half of this year, indebtedness was

With such a rally, in June this year it stood at 1,425,619 million euros, that is, 1,425 billion euros , according to data from the Bank of Spain. Thus, using the Gross Domestic Product (GDP) nominal GDP of the last four quarters, the debt-to-GDP ratio stood at 122.1% in the second quarter of 2021, above the objective established in the Stability Plan 119.5% of GDP. An unknown figure in recent history.

10.43% year-on-year
In percentage terms, in the last twelve months (June 2021 over July of last year) sovereign debt has increased by 10.43% according to data from the financial regulator, 134,607 million euros. This implies that the percentage increase continues to moderate from the maximum -13.75% – registered in February of this year.

By type of administration and measured in percentage terms, the largest increase occurred in June in the autonomous bodies of the State, with a rhythm of 132% in year-on-year terms, followed by Social Security whose debt increased by 33.4% annually in June, the central administration, 7%, the autonomic ones whose debt increased by 2.37%, while the local ones, financially backed by the central administration, decreased by 9.14% compared to twelve months ago.

State support
Measured in absolute volume, the comparison is unfavorably unbalanced in the Central Administration dish, since a part of the funds it obtains in the markets is transferred to other administrations, mainly Social Security and its autonomous bodies, which explains its strong increase.

In June, the State accumulated a debt of 1,236 billion euros, the autonomous bodies of the State 56,638 million euros, 319,928 million the autonomous communities, 22,688 million local corporations and 91,854 million euros Social Security, according to data from the Bank of Spain published Yesterday.

If compared to the debt of a month before, May 2021, the State debt increased in a single month by 19,632 million over the previous month of May (+ 1.6%) .

For their part, the autonomous communities increased their debt in June by 1.1% compared to the previous month, local corporations also increased their debt in June, by 0.2% compared to May, to 22,689 million euros. Finally, the Social Security debt rose 7.6% in June compared to the previous month.

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