Public administrations, excluding local corporations, reported a deficit of five thousand thirty-nine million euros in the first quarter of two thousand twenty-four. This represents a twenty-three point one percent increase from the same period in the previous year, primarily attributed to the financial impact of severe weather events. The deficit now accounts for zero point three percent of the Gross Domestic Product (GDP), slightly up from zero point two six percent of GDP recorded during the same timeframe last year.

The Ministry of Finance’s latest data indicates that excluding extraordinary expenses related to the severe weather, which amounted to two thousand six hundred eighty-six million euros during the first quarter, the actual public deficit could have been reduced to two thousand three hundred fifty-three million euros, marking a significant decrease of forty-two point five percent year on year.

Administrative bodies have experienced varying levels of financial strain. The central administration incurred a deficit of four thousand ten million euros, a reversal from the previous year’s surplus, driven by increased spending, particularly in support of local corporations to manage the weather-related expenses.

Despite some regions reporting deficits, the autonomous communities collectively reduced their deficit by twenty point two percent compared to the previous year, credited mainly to improved funding and revenue collection. The Social Security system maintained a surplus of three thousand six hundred twenty-five million euros, propelled by higher transfers and contributions due to a strengthening labour market.