The Bank of Spain has published that the debt of public administrations stood at €1.72 trillion in May 2026, which represents 100.2% of GDP, two points lower than a year earlier.
The Bank of Spain released this Thursday the public debt figure for May 2026: the total of public administrations accumulated a liability of €1.72 trillion, equivalent to 100.2% of the gross domestic product (GDP). The ratio thus decreases by two percentage points compared to the same month of the previous year, when it was at 102.2%.
The total figure includes the debt of the State, autonomous communities, local corporations, and Social Security. Although the decrease in the ratio is positive, the absolute volume remains high and the composition by administrations reveals divergent trends that mark the fiscal evolution of the country.
The State holds the largest portion of the liability
The State is, by far, the main responsible for public debt. In May 2026, its balance reached €1.575 trillion, 91.2% of GDP, which represents a year-on-year increase of 4.4%. This increase contrasts with the reduction observed in other units of the Central Administration, whose debt fell by 6.3% to €33 billion (1.9% of GDP).
For its part, the autonomous communities maintain a debt of €343 billion, equivalent to 19.9% of GDP, with a year-on-year growth of 2.1%. Local corporations, on the other hand, have managed to reduce their liability by 9.4% to €21 billion (1.2% of GDP).
Social Security presents a worrying trend: its debt increased by 7.9% year-on-year to €136 billion, the same percentage relative to GDP (7.9%). This increase reflects the structural pressures of the pension and social benefits system.
What implications does this have for the economy?
That the State continues to increase its indebtedness while other administrations reduce it concentrates fiscal risk in the central Government. This may limit its capacity to finance new public policies or respond to crises without resorting to tax increases or spending cuts. Furthermore, the growing debt of Social Security points to future tensions in the welfare state.
For businesses and citizens, controlled public debt is key to maintaining economic confidence and access to credit on favourable terms. The ratio of 100.2% remains high, but its downward trend is a positive sign for financial markets.
More short-term debt, more refinancing risk
The Bank of Spain's report also details the evolution of debt instruments. Long-term securities and loans with maturities over one year grew by 3.4% and 5.6%, respectively. However, short-term instruments increased by 9.3%, implying greater use of financing that requires frequent renewals and exposes the country to fluctuations in interest rates.
For public administrations, the recommendation is to maintain budgetary discipline and improve spending efficiency. For citizens and businesses, the fiscal stability of the country directly influences the economic environment: manageable debt can translate into better conditions for investment and employment.
The Bank of Spain updates this data monthly, and the next report for June 2026 is expected by the end of August. Analysts will closely monitor the evolution of the ratio and the behaviour of Social Security debt, which is shaping up to be one of the fiscal challenges in the coming years.
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