Public debt in Spain rose by 6.4% year-on-year in June to reach 1.56 trillion euros, a growth rate that had not been registered in this indicator since December 2021, according to data published this Tuesday by the Bank of Spain.

The total volume of public debt is equivalent to 113.1% of the Gross Domestic Product (GDP) at the end of June, which means that not even with all the production that the country achieves in a full year, the State could cover the volume of debt what’s wrong with it.

Since the end of 2018, public debt has grown in Spain by 369,000 million euros, which means that each year it increases by about 105,000 million euros.

The so pronounced increase that has occurred in the last five years has been conditioned by the expansive economic policy after the covid, to maintain the productive fabric and income in the country, as well as by the measures to counteract the effects of the war in Ukraine.

Compared to June 2022, the increase has been 93,763 million, also conditioned by the deployment of funds from the years in which elections are held in the country, both general and regional, which tend to encourage public spending.

By subsectors within the Administration, the State (the central Administration) is the one that has assumed the greatest increase in debt, among other things because the Government has opted for a policy of indebtedness from the center to the rest of the sectors, making transfers to Social Security to cover its deficit and also distributing aid to the autonomous communities, which has reduced the increase in their respective debt levels.

• Thus, the balance of the Central Administration’s debt rose to 1.39 trillion euros, with a year-on-year increase of 7.9% year-on-year in June;
• the debt of the autonomous communities rose 3.3% in the annual rate to 327,248 million;
• the debt of local corporations stood at 23,790 million euros in the sixth month, 4.3% more than in June 2022.

Finally, the debt of the Social Security administrations stood at 106,174 million, 7% more than a year earlier.