In this post we are going to tell you with data and numbers our levels of public debt . Imagine something relaxing: the information that we are going to give next can give you dizziness, headache and some symptoms of nervousness. Have a glass of milk and sit back before reading this.
Spain's public debt has no control, our Minister of Finance and Public Administrations, Mr. Cristobal Montoro, recognizes that Spain will owe more than 900,000 million euros at the end of 2013 . This is equivalent to 90.5% of GDP, since this year it is estimated to end at 85.3%.
If these objectives are met, the public debt will reach its record of 20,000 euros for each citizen , if the per capita income of each Spaniard is around 23,000 euros, it means that each Spaniard will owe almost what they earn.
To this data we add that a quarter of total State spending for 2013 (22.7%) is eaten by the payment of interest on the debt, the total sum gives a result of "Rescue".
More difficult still: our public deficit by the end of 2012 will end at 7.4% and we had promised Brussels to end at 6.3%… we are unpresentable!
With these figures and data, the markets will behave very badly with us and we already know what happens: the risk premium rises and new issues of Spanish securities are issued.
The Government, Mariano Rajoy, Cristobal Montoro and company mislead, delay and avoid recognizing that Spain needs a rescue but the data is evident.
1#. Spain Debt: Let's find the culprits
If you read our blog more or less regularly, you will already know who they are, but if they are not users of our humble blog, here is more information.
The increase in the public debt of Spain in 2012 and 2013 is directly related to payments to suppliers, as well as the different aid that is carried out on the autonomous communities, we must also remember that we pay the aid of Greece, Portugal and Ireland that previously we have assumed.
But the great problem of the increase in Spanish public debt is the 40,000 million (for now) that the recapitalization of the banking sector will cost. In fact, according to the General State Budgets for 2013, the debt of public companies goes from 59,893 million euros to 142,777 million, mainly due to the endowment of the Fund for Orderly Bank Restructuring (FROB) , which appears with an indebtedness of 60,528 million.
Regarding the financing of payments to suppliers, there is a debt of 27,372 million euros, Administrator of Railway Infrastructures (ADIF) 13,766 million euros, 13,341 AENA, 7,711 Lotteries and State Betting and finally 6,161 of RENFE.
There is nothing more to say. For now, we hope this information has been helpful to you.
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