Public debt in Spain closed with alarming figures in 2021

The International Monetary Fund asked the Spanish government for a payment plan to minimize indebtedness.

According to data published by the Bank of Spain, the public debt of the country reached alarming figures. According to the report, the liabilities shot up in more than 81,000 million euros during the past year, closing 2021 with a new maximum of 1,428 million.

The Bank of Spain is the body in charge of banking supervision in the country together with the European Central Bank. Its performance is attached to the Law of Autonomy of the Bank of Spain.

Due to the accumulated debt, the IMF International Monetary Fund ruled last Wednesday, February 16, and asked the Spanish Government a plan to reduce it. On previous occasions, the Bank of Spain itself or the Independent Authority for Fiscal Responsibility have requested.

Government perspective

Despite the increase in public debt, the government maintains the possibility of increasing tax revenues.

That is why the Minister of Economic Affairs, Nadia Calviño, presented a Budget Plan showing a drop in indebtedness.

"The Public Administration debt was reduced in 2021 to 118.7% of the Gross Domestic Product (GDP), which represents a reduction of 1.3 percentage points compared to the end of 2020," Calviño said.