Hacienda informa a Eurostat que España cumplió el objetivo de estabilidad con un déficit del 2,80% del PIB al cierre de 2024

Firstly, the 2024 fiscal year ended with a deficit of 2.80% of GDP, a reduction of 0.7 percentage points from the previous year. This figure, reported to Eurostat, meets and even exceeds the 3% target committed to the European Commission. It marks the fifth consecutive year that Spain has fulfilled its obligations to Brussels.

Taking into account the impact of extraordinary measures to mitigate the damages caused by DANA, the deficit would stand at 3.15%, although fiscal rules allow for the exclusion of expenses related to natural disasters, as was the case with the Lorca earthquake a decade ago.

The deficit reduction has been built on economic growth, considering that Spain grew by 3.2% in 2024, more than three times the eurozone average. Also, on the dynamism of employment with a record number of affiliates to the Social Security system reaching 21.8 million employed and the lowest unemployment rate in 16 years, standing at 10.6%.

Spain has once again shown that it is possible to reduce the public deficit while strengthening the Welfare State, deploying a strong social shield against the effects of the DANA recorded in late October. Since 2020, the deficit has been reduced by almost 70 billion euros while expanding public services. This improvement has been compatible with an effective response to emergencies like DANA, whose impact -5.590 billion euros- is excluded from the deficit according to fiscal rules, with 93% of the cost borne by the Central Administration.

This trajectory continues in 2025, allowing for further progress towards balancing public accounts. In fact, the Ministry of Finance has also released today the deficit data of the State for February of this year, standing at 0.8% of GDP. Thus, the deficit for the first two months of the year amounts to 13.488 billion euros. Excluding the 1.530 billion euros impact of the DANA measures in those initial months, the State deficit stands at 0.71% of GDP.

Additionally, the consolidated deficit data of the Central Administration, Autonomous Communities, and Social Security for January, in terms of national accounting, is 0.4% of GDP.

State Deficit (February)

By the end of February 2025, the State has recorded a deficit equivalent to 0.8% of GDP. This results in a deficit of 13.488 billion euros. This figure includes an extraordinary expense of 1.530 billion euros due to the severe floods caused by DANA.

By excluding interest from the deficit figure, the primary balance stands at 8.444 billion euros by the end of February 2025, equivalent to 0.5% of GDP.

Non-Financial Resources of the State

Non-financial resources amount to 33.361 billion euros, representing a 5.7% increase compared to the same period in 2024. Taxes total 28.077 billion euros, 84% of total resources, with a 7.4% growth from February 2024.

Taxes on production and imports have increased by 8.6%, of which 14.597 billion euros come from VAT, an 11.5% increase from 2024. Notably, Hidrocarbons tax has seen a 2.5% growth, reaching 1.953 billion euros.

Current taxes on income and wealth amount to 8.284 billion euros, a 4.8% increase from the first two months of 2024. Specifically, Personal Income Tax (IRPF) reaches 6.440 billion euros, a 17.9% increase, while revenues from Non-Resident Income Tax amount to 1.016 billion euros, a 28.4% rise.

Taxes on capital amount to 29 million euros, and social security contributions bring in 940 million euros.

Property incomes reach 1.044 billion euros, with 1.013 billion from interests, a 6.5% decrease from the previous year, and 31 million from dividends and other incomes.

Revenue from sales of goods and services total 336 million euros. Lastly, other resources amount to 645 million euros, including investment aid and international cooperation.

Non-Financial Jobs of the State

The largest segment is transfers between Public Administrations, accounting for 61.2% of total non-financial jobs. Specifically, in the first two months of the year, these transfers amount to 28.660 billion euros, an 18.6% increase from the previous year.

On one hand, the Regional Administration has received 15.211 billion euros. Of these transfers, 14.354 billion are from the financing system, of which 13.854 billion are advance payments and the rest correspond to system financing advances.

Similarly, the Social Security Funds have received 7.180 billion euros, an increase of 2.963 billion euros compared to 2024.

On the other hand, the Local Administration has received 5.162 billion euros, a 17.8% increase from the previous year. Of these transfers, 3.611 billion correspond to their share of State revenues. Transfers made outside the financing system amount to 1.551 billion euros, of which 1.501 billion euros are for financing DANA-related expenses.

Wages have increased by 4.4%, amounting to 3.278 billion euros. Salaries have risen by 5.2% compared to February 2024. Intermediate consumption has reached 1.044 billion euros, a 2.9% increase from the same period last year.

Interests paid have grown by 14.6% to 5.044 billion euros, while social benefits other than social transfers have increased by 5.5%, primarily due to higher passive pension disbursements, which rose by 6.1% to 3.310 billion euros. Notably, this is partly due to the 2.8% pension revaluation in 2025, applied to the 2024 consolidated expenditure, which saw a 3.8% revaluation.

Subsidies expenditure has surged by 84.2% to 1.273 billion euros, with product subsidies increasing by 609 million euros to 1.269 million euros in February 2025.

International cooperation has risen by 78 million euros to reach 257 million euros, while the EU contribution from own resources based on VAT and GNI stands at 2.305 billion euros, an 11.8% increase from 2024.

Lastly, gross fixed capital formation amounts to 1.129 billion euros, a 14.2% increase, while investment aids and other capital transfers total 239 million euros.

Joint Deficit of the Central Administration, Autonomous Communities, and Social Security (January)

In January 2025, the joint deficit of the Central Administration, Social Security Funds, and Autonomous Communities stands at 6.640 billion euros, equivalent to 0.4% of GDP. Considering the impact of DANA, the deficit reaches 6.784 billion euros.

Central Administration

The deficit of the Central Administration stands at 7.813 billion euros by the end of January 2024, 0.47% of GDP.

• The State deficit in January, in terms of GDP, amounts to 0.43%, totaling 7.288 billion euros.
• Organisms of the Central Administration report a deficit of 525 million euros in January 2025, a 12.7% increase from 2024.

Autonomous Communities

By the end of January 2025, the Regional Administration reports a deficit of 1.135 billion euros, equivalent to 0.07% of GDP, compared to the 0.11% deficit in the same period of the previous year. Adjusting for the effect of system financing advances received from the State, the decrease is 14% for both periods.

This outcome is driven by a 9.1% increase in revenues, reaching 17.520 billion euros, outpacing the 4.5% growth in expenditure, totaling 18.655 billion euros. Additionally, in January 2025, there was a 144 million euros expense related to DANA in the accounts of the Valencian Community.

Taxes have grown by 8.6%, reaching 6.773 billion euros. Within this category, taxes on production and imports amount to 1.212 billion euros.

Revenues from income and wealth taxes have increased by 10.9% to 5.387 billion euros, with 5.284 billion from State advances, a 10.8% rise. Capital tax revenues total 174 million euros.

Inter-Administration transfers amount to 9.496 billion euros. State financing system advances have grown by 12.5%, from 6.775 billion euros in January 2024 to 7.619 billion euros in January 2025.

Meanwhile, revenues from other resources stand at 1.203 billion euros, a 10.8% decrease from January 2024.

On the expenditure side, salaries have increased by 6.1% to 8.037 billion euros. Intermediate consumption

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