Spain's public administration debt closed the financial year 2024 at €1.621 trillion, marking an increase of 2.9% from the previous year.

This surge translates to an additional €45.2 billion, yet the debt-to-GDP ratio decreased to 101.8%, down 3.3 percentage points from 2023. This decline in the ratio was not due to reduced spending or absolute decreases in the debt but rather a result of economic growth.

Despite this reduction in percentage terms, public debt has risen significantly, approaching the record high of €1.636 trillion noted at the end of the third quarter of 2024. The figures, reported by the Bank of Spain, indicate that the current year-end total represents the highest amount of public debt in history.

Comparatively, the overall debt fell by €15.1 billion from the third quarter, resulting in a debt-to-GDP ratio drop from 104.4%.

The central government, led by Pedro Sánchez, accounted for a substantial part of this increase, with state debt rising to €1.489 trillion, a 3.7% increase equating to over €55 billion.

However, the state debt ratio relative to GDP remains at 93.6%, below the previous year's 95.8%.

Concerning Social Security, its deficit reached €126.173 billion, or 7.9% of GDP—two-tenths higher than in 2023—reflecting an annual increase of 8.6%.

The rising pension costs have significantly impacted budget stability, with debt climbing by approximately €10 billion annually over the last three years.

The figures for past years were €106.163 billion in 2022, €116.166 billion in 2023, and the noted €126.173 billion for 2024. The recent pension reform and increased contributions have enhanced Social Security revenues, yet pension expenditures continue to pose challenges for the system's sustainability.

The Bank of Spain notes that the increase in Social Security debt is primarily due to state loans to the General Treasury of Social Security, which finance a large portion of its budget deficit.

While these loans do not impact the total public administration debt, they do contribute to the Social Security's financial obligations.

Regional governments have seen their cumulative debt rise to €335.977 billion, which represents 21.1% of GDP, a slight decrease from 21.7% in 2023, with a year-on-year increase of 3.3%.

In absolute terms, Catalonia leads with a debt of €89.035 billion, a rise of €3.049 billion year-on-year, followed by the Community of Valencia, with €60.332 billion and an increase of €2.336 billion.

The Community of Valencia remains the most indebted region in terms of percentage of GDP at 40.7%, although this reflects a reduction of 0.9 percentage points since the end of 2023. Murcia saw a rise of 1.4 percentage points to 31.5%, the only autonomous community to increase its debt-to-GDP ratio in 2024. Catalonia ranks third at 29.7%, down 0.8 points, and Castilla-La Mancha is fourth at 29.1%, also showing a decrease of 0.9 points.

Local government debt has continued its downward trend, currently standing at €23 billion, which is 1.4% of GDP, reflecting a 2% decrease from a year earlier.

Only municipalities with populations over 300,000 showed slight debt increases, rising from €5.352 billion to €5.374 billion.

This increase varied among cities, with Madrid's debt decreasing from €1.960 billion to €1.943 billion, while Barcelona's debt increased from €1.333 billion to €1.390 billion.

These public debt figures are set to be forwarded to the European Commission as part of the Excessive Deficit Protocol (EDP) notification.

The Spanish government has notably exceeded its fiscal structural medium-term plan sent to Brussels, which projected a debt-to-GDP ratio of 102.5% for 2024. The actual ratio of 101.8% falls significantly short of meeting European fiscal rules, which mandate a reduction of public debt to 60% of GDP. The government has outlined projections suggesting a decrease in debt to 98.4% by 2027, 90.6% by 2031, and 76.8% by 2041, although it does not specify when Spain will be able to reduce its debt to the prudential level required by Brussels.