State reduces its deficit by more than 11% to November, excluding local authorities

In the period January-November, the consolidated deficit of the three sub-sectors amounted to 41.81 billion euros, posting a year-on-year decline of 11.5%. In GDP terms, the deficit is equivalent to 3.87%, 0.67 percentage points of GDP below that posted in November 2014.

These figures exclude financial aid accounted for to the end of November, representing 0.02% of GDP, which is not calculated for the purposes of compliance with the stability target.

Central Government

With just a month left before the close of the year, the Central Government reduced its deficit to 24.6 billion euros, a reduction of more than 24% on the same period of the previous year. In GDP terms, the Central Government deficit is equivalent to 2.28%, 0.85 percentage points lower than the figure posted in November 2014, when it equated to 3.13% of GDP.

This significant reduction in the deficit is both due to improved State figures, the negative balance of which fell by 22% year-on-year, and the surplus of Central Government bodies which amounted to 0.27% of GDP.

Social Security Funds

Social Security Funds posted a deficit of 3 billion euros to November, equivalent to 0.28% of GDP. Broken down by agent, the Social Security system posted a deficit equivalent to 0.82% of GDP, the State Public Employment Service posted a surplus equivalent to 0.56% of GDP, and finally, the Wage Guarantee Fund (Spanish acronym: FOGASA) posted a deficit of 199 million euros.

Regional governments

Regional governments posted a deficit of 14.2 billion euros to the end of November, equivalent to 1.31% of GDP, compared with a deficit of 1.34% posted in November 2014. This figure includes an extraordinary expense recorded in the month of September for a sum of 1.23 billion euros, derived from the reallocation of investments made in previous years in the autonomous region of Catalonia. Discounting this effect, the sub-sector would have reduced its deficit by 7.2%

Non-financial resources increased by 3.3% year-on-year while costs increased by 3.1%. Particularly noteworthy is the reduction in costs to service debt by regional governments, which fell by 51% in the period January-November, as a result of the 0% interest rate set for loans under the Regional Liquidity Fund held with the State.