Spain mobilized substantial resources to respond to the epidemic, with two years of government action resulting in expenditures that support the health system, protect jobs, assist companies, and safeguard family incomes. Across the national government, autonomous communities, and local authorities, spending for pandemic response reached significant levels, with the latest update of the stabilization framework documenting a total around 79,603 million euros dedicated to health and related local services over the last two fiscal cycles.
The aggregate covid related outlays by all Public Administrations reached 35,728 million euros in the most recent year reported, reflecting a decline from the 43,875 million euros seen at the onset of the crisis in 2020 when mobility restrictions paused much of economic activity. This trajectory illustrates a transition from emergency measures to stabilization and recovery efforts as the health system adapted to evolving circumstances.
In the first year of the pandemic, the effort to counter the health emergency and its economic impact equaled about 3.9 percent of gross domestic product, according to data compiled in the Stabilization Plan by the General State Administration. The stabilization effort involved costs comparable to a three percent of GDP in a closely related accounting frame, underscoring the scale at which public resources were marshaled to cushion the impact of the health shock.
Almost all measures relating to central administration involved transfers and direct support. Between the two most recent years, transfers totaled 66,844 million euros, while costs directly tied to the covid response reached 74,465 million euros, broken down into 41,042 million in 2020 and 33,414 million in 2021. The share of expenditure attributed to Security, autonomous communities, and local entities amounted to 39,612 million in 2020 and 27,232 million in the following year, illustrating the diffuse spread of resources across multiple levels of governance.
Public administrations under review in the study also implemented employment retention measures designed to prevent mass layoffs, including furlough schemes and relief for self-employed workers, as part of a broader social shield intended to preserve family income, support businesses, and sustain public healthcare. Investments were made in workforce adjustments, equipment acquisitions, and system upgrades in collaboration with regional bodies, reflecting a coordinated effort to maintain essential services in a strained environment.
The monumental cost of covid losses
Over the two-year window analyzed, more than six million sick leave episodes attributed to covid were recorded, with 2.88 million in 2020 and 3.19 million in 2021. This volume translated into an estimated fiscal impact of about 4.83 billion euros, a conservative figure acknowledged by the Official Association of Administrative Managers. The estimate captures direct costs borne by the administration, employers, and the wider workforce, with recognized room for higher actual figures given the conservative methodology.
The first day of absence plus social security payments to employers during this period added at least 1,269 million euros in costs from the employer perspective. For workers, the loss was at least 1,043 million euros, reflecting that a substantial portion of the wage base continued to be paid during sick leave. For the administration, the additional outlays associated with the absence were at least 2,516 million euros. These calculations used the minimum interprofessional salary as a baseline for sickness benefits, suggesting that the true costs could be appreciably higher as soon as more favorable compensation scales are considered.