Public debt reaches a new record above 1.71 trillion in the third quarter
The debt of all public administrations exceeded 1.71 billion euros at the end of September. This is a new historical record in terms of volume, although the progress of the economy – which maintains its momentum thanks to household consumption and increased investment – causes the GDP ratio to reduce two tenths in relation to the second quarter to 103.2% and one point if compared to the same period just one year ago.
The data published this Monday by the Bank of Spain (BdE) confirm that the State was the administration that increased its debt the most in the third quarter of the year in interannual terms (+4.6%), given that it is the one that concentrates the greatest weight of the policies that have been deployed over recent years. to be able to face the concatenation of crises since the pandemic (energy, inflation…). Meanwhile, that of the autonomous communities rose by 1.9% and that of local corporations decreased by 2.6%.
Last week the Bank of Spain warned in its Autumn Financial Stability Report that the absence of a General State Budget, after the 2023 accounts were extended for two consecutive years, and the lack of specification of the medium-term Fiscal and Structural Plan represent an obstacle to the reduction of the public debt that Spain has pending. In the document, the organization led by José Luis Escrivá insisted that “concrete measures to control spending and/or increase income” are necessary.
