Daniel CaballeroSEGUIRMadrid Updated: Save Send news by mail electrónicoTu name *
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The debt of the public administrations with businesses and families has not stopped growing in recent years. As emerges from the report “The evolution of public debt in Spain in 2019,” prepared by the Bank of Spain . Specifically, in the last financial year, the accounts receivable amounted to 77.356 million euros, 6.2% of the GDP.
In 2014, the debt of the various administrations (State, communities autónomomas, municipalities and Social Security) with these sectors was 62.610 million. In a matter of five years the figure has increased in 14.746 million. And, precisely, this situation occurs when the productive fabric and the households have more liquidity needs because of the crisis of the Covid-19.
The State should be in 2019, a total of 41.250 million businesses and families, 7.813 million more than in 2014; the autonomous regions amounted to an outstanding bill of 10.494 billion, 2.567 million less than five years ago; the town councils, 16.978 million (+2.879); and Social Security, 8.634 million (+6.620). In this way, is the central administration that have a higher passive in the face of these sectors and the one that has most increased the same in the above-mentioned period.
The report also follows the upward trend of public debt in foreign hands. The capital foreign had already last year, almost 49% of the same, although, according to data from the Treasury, the crisis of the Covid has reversed the situation.
In February of 2020 more than half of the debt was in the possession of foreign nationals (50,35% of the total, 500.444 million). In contrast, since march, the trend has been downwards. In April, the data was in the 48,07%, that is to say, 494.670 million, according to Treasury statistics.
The pressure of debt
in Addition, the Bank of Spain notes, as it has been doing these months, that the pressure of the debt on the accounts will be growing. This institution already calculated weeks ago -the Airef coincided in the analysis – that this could amount to 130% of GDP in 2030 if action is not taken, a draught of economic (structural reforms).
The past year the indebtedness of Spain was at 95.5%, adding up to five years of reduction in relation to GDP. However, for this 2020 is not expected, nor much less that the panorama will continue in the same way. “The downward trend observed in Spain in 2019 contrasts with the that it will occur in the next few months, given the expected impact of the Covid-19. This runs, on the one hand, through the numerator of the ratio, as a result of the measures taken to minimize the effects of the disease and the effect of the declining activity on the automatic stabilizers revenue and expenditure. On the other hand, the defendant is expected to decline in the GDP nominal will also boost the ratio to rise,” reads the report. In other words, that the increase in expenditure, the income reduction and the slowdown of the economy as a whole will shoot up from the debt in any possible scenario.
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