The consolidated deficit of the Central Administration, the autonomous communities, and Social Security stood at 18.355 billion until May, 6.5% less than in 2025. The improvement is supported by the surplus of Social Security funds and the rebound in revenue.
The public deficit —excluding local— decreased to 1.03% of GDP in May 2026, compared to 1.16% in the same period last year. In absolute terms, the financing need is 18.355 billion, 6.5% less than in 2025, according to data published by the Ministry of Finance.
The improvement is explained by the performance of the autonomous communities and, above all, by the strong increase in the surplus of Social Security Funds. The State, for its part, maintains a deficit of 1.30% of GDP at the end of June, with a financing need of 23.210 billion.
The primary balance —which excludes interest— shows a deficit of 3.471 billion, equivalent to 0.19% of GDP. This figure reflects that the bulk of the state imbalance comes from the cost of debt.
Revenue drives income
The State's non-financial resources grew by 7% until June, reaching 156.984 billion. Taxes contribute 133.267 billion, 84.9% of the total, with an increase of 7.6% compared to 2025. Personal income tax and corporate tax lead the rise, with increases of 15.6% and 13.2%, respectively.
VAT, on the other hand, grows by 3.9% and reaches 58.739 billion. The revenue reflects the effect of extraordinary measures against rising energy prices, in effect until May 31. From June 1, ordinary rates were restored, except for petrol, diesel, and biofuels, which maintained the reduced VAT of 10% until June 30.
Among the special taxes, there is a notable drop of 29.9% in electricity tax, down to 564 million, and a 7.4% decrease in hydrocarbons, down to 5.709 billion. Conversely, the financial transactions tax rises by 38.4% and the insurance premiums tax by 7.2%.
Social contributions amount to 3.305 billion, and transfers from other administrations grow by 12.8%, reaching 8.968 billion. Dividends from the Bank of Spain contribute 234 million.
Expenditure grows due to transfers
The State's non-financial jobs increased by 8.3%, reaching 180.194 billion. Transfers between administrations account for 60.7% of expenditure, with 109.348 billion and an increase of 8.4%. The Regional Administration receives 54.612 billion, of which 47.516 billion corresponds to the financing system.
Among the specific items, the Treasury details a transfer of 2 billion to the Spanish Agricultural Guarantee Fund to compensate for the loss of income of farms due to adverse weather events and the price increase linked to the crisis in the Middle East.
For the entire year, the Government maintains its public deficit target, although the May data points to a more favourable fiscal consolidation path than expected. The evolution of revenue and expenditure control will be key to closing the fiscal year within European commitments.
The coming months will be decisive to see if the improvement consolidates, especially with the return to ordinary VAT rates and the evolution of expenditure in the second half of the year.
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