The Galician community plans to close the year 2024 “not only with a lower level of public debt than it had before the pandemicif not below 2012 levels“, according to the president of the Xunta, Alfonso Rueda. A report presented to the Council of the Xunta concludes that the “delays of the central government in payment of deliveries on account In the second quarter of this year, they caused an increase in the debt/GDP ratio motivated by the need to subscribe to credit policies with a financial cost of more than 10 million.
However, these lines of credit have already been returned and there is no expectation that they will have to be used again. Taking into account the data, Rueda has indicated that the forecast for the end of the 2024 financial year is to reach a debt volume of 11,937 millionwhich represents a reduction of 233 million compared to the end of the previous year.
According to the latest data from the Central Bank, which were released last week, Galician public debt was reduced in the third quarter of the year to 15% of GDP and Galicia’s debt/GDP ratio is 1.3 tenths lower than that registered in the previous quarterplacing it 6.3 points below the average of the Autonomous Communities.
The head of the Xunta explained that the community’s public debt decreased by 929 million in this third quarter. Compared to the other regions, Galician debt represents only 3.6% of the total, far from that of Catalonia (26.7%), Valencia (17.9%), Andalusia (12%) or Madrid (11.1%). Likewise, the average debt per inhabitant in the third quarter amounts to 6,806 euros.
Taking as reference the previous debt at the beginning of the pandemicpublic administrations as a whole increased their debt by 33.6% compared to the end of 2019, recalls the Xunta. Most of this increase was motivated by the debt of the State Administration.
What’s more, according to his words, the central Administration increases 37.3% (1,172,759 million) and the Social security 106% (107,136 million). In this period Galicia increased its debt by 7.4%, compared to 12.9% for the communities, the report states.
Budgets 2024
After raising the level of debt as a consequence of the health emergency, Galicia returned to the path of debt reduction, which places its ratio not only below the pre-covid level, but below 2012 levels.
Rueda has pointed out that Galicia is the community with the smallest increase in the volume of debt since 2008″, a year in which the upward trend in the evolution of indebtedness began in all of Spain’s public administrations. Galicia prepared the budgets for 2024 without debt, for the first time in the last 16 yearsand the accounts for 2025 follow the same line.
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