The debt of all public administrations increased by 14.644 million euros in June, reaching 1.21 trillion euros, which exceeds 99% of GDP and marks a new historical high, according to data published Tuesday by the Bank of Spain.

Specifically, public debt increased 1.2% in June compared to the previous month, reaching 1.21 billion euros, and rose 3.8% compared to the same month last year, rising to 44.741 million euros. Euros in the last year.

By administrations, the state debt accounts for almost all of the increase in public debt in June, as it increased at a monthly level of 14,059 million, to 1,065 billion euros. With respect to the previous year, it increased 4.3%, adding 44,197 million euros in one year.

The public debt of the autonomous communities also contributed to the increase in total indebtedness in June, as it rose by 1,493 million euros, to 300,061 million euros. On an annual basis, it increased 2.3%.

Likewise, local corporations increased their indebtedness by 294 million in June compared to the previous month, to 26,334 million, but in the last year they have cut their debt by 3,079 million, 10.4% less.

NEW SOCIAL SECURITY DEBT RECORD

Finally, the debt of the Social Security administrations rose 4% in June and stood at 48,693 million euros, new maximum, while at an annual level it registered an increase of 39.5% , with 13,805 million euros plus.

This rebound in debt is due to loans granted by the State to Social Security in recent years to guarantee the payment of pensions. The monthly pension bill currently exceeds 9.6 billion euros, but in the months in which there is extra pay, it is doubled.

The Government approved last March the granting of a loan from the State to the General Treasury of the Social Security amounting to 13,830 million euros to pay the pensions.

In the months of June and November, Social Security jointly pays the ordinary and extraordinary payroll of pensions, a disbursement that currently reaches 19,000 million euros and that can generate liquidity tensions to the system.

Of the total money borrowed, Social Security used 7.5 billion euros to pay the ordinary and extraordinary payroll last June.

The remaining 6,330 million euros of the loan granted for this year will be used to pay the ordinary and extraordinary payments in November. Thus, at the end of the 2019 financial year, the Social Security debt will collectively exceed 55,000 million euros.

According to the criteria of The Trust Project

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  • Social Security
  • GDP
  • Bank of Spain
  • Mortgages
  • economy
  • Crisis
  • Pensions
  • Macroeconomy
  • Taxes
  • savings and consumption

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