The debt of all public administrations increased by 7.027 million euros in September, reaching 1.207 billion euros, which is around 98% of GDP and marks its second highest figure after the historical maximum recorded on last June (1.210 billion), according to data published this Friday by the Bank of Spain.

Specifically, public debt increased by 0.58% in September compared to the previous month, but rose 2.5% compared to the same month last year, rising to 29,323 million euros in the last year.

The ratio of debt to GDP would have been around 97.94% of GDP last September, which is about two percentage points above the debt target for the year as a whole, located at 95, 9% of GDP, contained in the 2020 Budget Plan that the Government sent to Brussels in October.

By administrations, the increase in the debt of the State and Social Security explains all the increase in public debt in September, given that the indebtedness of local communities and corporations was reduced.

State Debt

Specifically, the State debt grew in the ninth month of the year by 0.87% compared to the month of August , to 1,064 billion euros, and compared to the previous year, 2.76% rebounded. The figure represents the second highest figure after the peak recorded in June (1.065 billion).

On the contrary, the public debt of the autonomous communities was reduced by 0.43% in September, to 297,286 million euros, but an annual increase of 1.6%; while local corporations also reduced their indebtedness by 311 million in August compared to the previous month, to 25,307 million, and in the last year they cut their debt by 9.6%.

Finally, the debt of the Social Security administrations rose 2.4% in September and now stands at 52.445 million euros, new maximum, while at an annual level it registered an increase of 50.4%, with 17,582 millions of euros more in the last year.

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 is currently close to 9.7 billion euros, but in the months in which there is extra pay, it doubles.

According to the criteria of The Trust Project

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  • GDP
  • Social Security
  • Crisis
  • economy
  • Macroeconomy
  • Pensions
  • Taxes

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