The debt of public administrations closed 2024 at 1.621 trillion euros, an increase of 2.9% compared to the previous year, but it decreased to 101.8% in relation to the GDP, 3.3 points lower than the rate recorded in 2023, according to data confirmed this Monday by the Bank of Spain. On the other hand, the debt of Castilla-La Mancha was estimated at 29.1% of the regional GDP.
In the medium-term structural fiscal plan sent to Brussels, the Government estimated that the debt-to-GDP ratio would decrease to 102.5% in 2024, although the rate has actually fallen below that forecast (101.8% of GDP).
Looking further ahead, the Government foresees the debt falling to 98.4% in 2027, 90.6% in 2031, and 76.8% in 2041. Although there is a downward trend in the coming years, the Government’s projections do not specify when Spain will reduce its debt below the «prudent» levels of 60% set by Brussels.
The public debt has increased by 45.224 billion euros in the last year (+2.9% year-on-year), exceeding 1.6 trillion euros, close to the historical maximum set at the end of the third quarter of 2024 (1.636 trillion).
Regarding the third quarter of 2024, the debt of all public administrations has decreased both in absolute terms, with 15.130 million less, and in terms of GDP, dropping from 104.4% to 101.8%.
The debt of the Central Administration has decreased to 93.6% of the GDP. However, the debt of the Social Security Administrations has increased to 7.9% of the GDP, with an annual growth of 8.6%. This increase is due to loans granted by the State to the General Treasury of Social Security to finance a significant part of its budget imbalance. These loans, being financial operations between subsectors, do not affect the total debt of the Public Administrations sector.
The debt of Local Corporations (CCLL) stood at 22.848 million euros, representing 1.4% of the GDP, lower than the 1.6% in 2023, and 2% less than the balance recorded a year earlier.
In terms of territorial administrations, the debt of the autonomous communities increased to 335.977 million euros in December 2024, representing 21.1% of the GDP, lower than the 21.7% in 2023, with a year-on-year increase of 3.3%.
Among the autonomous communities, Catalonia (89.035 million euros), Valencia (60.332 million), Andalusia (40.529 million), and Madrid (37.260 million) continue to account for two-thirds of all the debt held by regional governments in 2024, although this also reflects population distribution.
However, in terms of GDP, Valencia, with a debt representing 40.7%, remains at the top of the most indebted regions in relation to their wealth, followed by Murcia (31.5%), Catalonia (29.7%), and Castilla-La Mancha (29.1%). On the other hand, the least indebted regions in relation to their GDP are Navarra (10.3%), Canary Islands (11.4%), Basque Country (11.6%), and the Community of Madrid (12%).
Regarding municipalities, those with more than 300,000 inhabitants accumulated a debt of 5.374 million euros in the last quarter of 2024, 22 million more than at the end of 2023. Specifically, Madrid, with a debt of 1.943 million euros, remains at the top of the most indebted local corporations, followed by Barcelona with 1.390 million and Zaragoza with 568 million.
FUENTE