Spain Defies Expectations: Achieves Record-Low 3.64% Public Deficit for 2023, Prioritizes Welfare State and Social Protection

Spain meets deficit goal and finishes 2023 with 3.64% GDP.

Spain ended the 2023 financial year with a public deficit of 3.64% of GDP including financial aid, slightly lower than the provisional 3.66% reported last week by the Minister of Finance, Mara Jess Montero. The Ministry stated that the data changed minimally after receiving the definitive national accounting data, with the deficit standing at 3.65% excluding financial aid.

The Ministry of Finance has provided Eurostat with the official closing data, meeting and even surpassing the 3.9% forecast committed to the European Commission. This marks the fourth consecutive year that Spain has fulfilled its commitments to Brussels. Despite this achievement, Spain reinforced its Welfare State and social protections to combat the effects of the war in Ukraine. Since the start of the pandemic in 2020, Spain has reduced its deficit by over 60 billion euros while expanding public services. The Social Security system closed 2023 with a deficit of 8,627 million euros, equivalent to 0.59% of GDP, despite record contributions and increased employment.

Despite this reduction in deficit, social security funds registered a negative balance of 8,211 million euros in 2023, equivalent to 0.56% of GDP.

Furthermore, Social Security received transfers worth €43,908 million in transfers last year representing an increase by €1 billion compared to previous years.

Overall, these figures indicate that despite economic growth and reduced deficits, social protection remains a priority for Spain’s government.

In conclusion, Spain’s financial landscape in 2023 displayed a mix of deficit reduction

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