Spain has reported an increase in its public deficit, which now stands at eighteen point six billion euros, equivalent to one point eleven per cent of the country’s gross domestic product. This figure represents a slight decrease from the same period last year. Between January and May, public revenues have risen by six point eight per cent, primarily driven by an increase in tax collection.

The public deficit has grown by three point six per cent compared to the previous year, with extraordinary expenses related to the October floods accounting for approximately three point four billion euros. Without these expenses, the deficit would have been reduced by fifteen point five per cent to about fifteen point two billion euros. The central government’s deficit has soared by fifty-nine per cent, reaching over eleven point six billion euros, closely linked to these extraordinary costs as well as social security transfers not adequately offset by revenue increases.

Conversely, autonomous communities have managed to reduce their deficit by one point seven per cent, totalling ten point one billion euros, which represents six per cent of GDP. This reduction is attributed to rising revenues and greater financing advances. All autonomous communities are operating at a deficit, except for the Basque Country, which has a surplus of zero point twenty-three per cent of GDP.

In addition, the social security system has transitioned from a deficit to a positive balance of three point one billion euros, or zero point nineteen per cent of GDP, attributed to higher social contributions and increased state transfers. The new banking tax has also contributed by generating five hundred and sixty-six million euros in revenue, amidst an increase in overall public spending linked to various factors including debt interest and intermediate consumption.