- The Government's commitment to fiscal consolidation has allowed the debt-to-GDP ratio to have decreased four tenths more than that foreseen in the Budget Plan
- In 2019, the reduction of the debt to GDP ratio was 2.1 percentage points; added to the point that it decreased in 2018, they represent a decrease in two years far greater than that achieved in the period 2014-2017
According to data from the Bank of Spain, the debt of the Public Administrations fell in 2019 to 95.5 of the Gross Domestic Product (GDP), which represents a reduction of 2.1 percentage points over the end of 2018 and the figure lowest since 2012.
The fiscal consolidation process promoted by the Government is allowing the sustained reduction of the ratio of public debt to GDP. Thus, the decrease in 2019 has been four tenths higher than the objective sent in October by the Government to the European Commission in the 2020 Budget Plan, which was 95.9% of GDP.
The effort in debt reduction of 2.1 percentage points in 2019 is in addition to that registered in 2018, in which the decrease was 1 point. The reduction achieved in these two years, of 3.1 percentage points, is much higher than that of the 2014-2017 period, in which the ratio fell 2.1 points, from 100.7% to 98.6%.
This decrease has been possible thanks to the significant decrease in the net issuance of the Treasury, which last year was below 20,000 million euros, the lowest figure since 2007, due to the confidence of investors in the Spanish economy, which was it is translating into a sustained reduction of the risk premium, and to the more efficient management of the treasury of the Public Administrations.
In December 2019, the debt of the Public Administrations, according to the Excessive Deficit Procedure (PDE), reached a balance of 1,188,893 million euros.
