The public sector across Spain reached a new peak in debt, totaling 1.568 trillion euros in June, marking a monthly rise of more than 1.7 percent. This latest increase is based on data published by the Bank of Spain on Thursday and reflects the ongoing effects of the pandemic crisis and the war in Ukraine on government finances. The sustained upturn in debt highlights the fiscal pressures faced by national, regional, and local authorities as they address higher expenditure while dealing with softer revenue streams in a period of economic adjustment.
Looking back over the previous year, public debt rose by 6.4 percent, adding 93.763 million euros to the chest of liabilities. Analysts point to a combination of subdued income, higher public spending, and the persistent impact of inflation and energy costs on the public balance sheet as the primary drivers behind this growth. The debt accumulation occurs even as many government offices pursue measures to stabilize budgets and sustain essential services for households and businesses across the country.
When measured against economic output, the debt level stands at 113.1 percent of GDP at the close of the year, according to the Bank of Spain’s calculations based on the last four quarters of nominal GDP. This ratio captures the scale of liabilities compared with the size of the economy and serves as a key indicator for assessing long‑term fiscal sustainability, debt service capacity, and the burden borne by future generations.
The monthly uptick observed in June is chiefly attributed to higher borrowing by the central government, with regional and local authorities contributing to the rise to a lesser extent. In contrast, the debt of autonomous communities remained relatively stable, while municipal liabilities showed only modest movements during the same month. This pattern underscores the mixed dynamics within the sub‑national financing landscape, where different levels of government respond to evolving revenue streams and spending commitments. The stability of social security agency debt during June further highlights the complex balance between ongoing obligations and funding sources across the public sector, as authorities navigate the priorities of health, education, pensions, and public investment. Data from the Bank of Spain consolidates these observations and provides a comprehensive view of how debt evolves in tandem with macroeconomic conditions and policy choices across Spain. Bank of Spain.