Tuesday, September 25, 2012

Spanish Government Public Deficit Already Exceeds Administration’s Target for the Full Year

The public deficit of the Spanish government and the Social Security system in the period January-August amounted to 50.132 billion euros, equivalent to 4.77 percent of GDP. The figure already exceeds the administration’s target for the full year, which is 4.5 percent of GDP, reports Epais.

Outlays in the period amounted to 110.238 billion euros, while revenues were 60.106 billion. The deficit was 23.8-percent higher than in the same period a year earlier.

Spain has not yet requested a eurozone bailout for fear that they will have to cut spending, but without a bailout, it will be difficult or impossible to fund the deficit. Welcome to the euro zone, much stranger than the twilight zone.


  1. Wait, if the 50 billion euro deficit is 4.7% of GDP, then the 110 billion euro budget is 10.3% of GDP. Either there is a lot of off-budget stuff, or the local governments get a lot of the taxes in Spain.

    The third possibility, a 'small' govt only 1/10th of the total economy, is absurd.

  2. What do you mean that Spain "has not requested a Eurozone bailout"? What was this all about?