Sunday, June 4, 2023

Spain was the third country in the European Union to increase spending the most on the pandemic

Spain’s response to the pandemic ranked it as the third member state with the largest increase in public spending during the first year of the crisis. In 2020 it reached 586,389 million euros, which is 62,948 million more than 523,441 million in 2019.

According to figures cited by Fedia, the executive led by Pedro Sanchez will increase spending by 8.3 points of GDP between 2019 and 2021, Only Greece signed up to an increase in public funding more than Spain. During the first two years since the outbreak of the health crisis, spending broke records and set above 50% of GDP for the first time. The government was forced to shore up public services reduced by the impact of COVID-19. In fact, breaking down the data, it can be seen that Moncloa notably increased spending Financial Aid, Pensions, Social Security and Health during 2021. The three pillars – the second – who needed extraordinary help to face the pandemic.

spain, which has always been well below the EU average expenditure, during the first year of the Covid crisis suddenly reduced distances. In pre-pandemic, Twenty-Seven took 4 points over Spain, a distance that has narrowed to three points of GDP in 2020. A year later, EU spending rose to 51.5% of GDP, while our country did so at 50.6%. Compared to the period, “In 2015 Spain ranked 11th among lowest spending countries as percentage of GDP, 18th in 2021”, Working document ‘Development of public expenditure by work in Spain and the EU’ does note. ‘ Produced by Manuel Diaz and Carmen Marin. It is worth noting the strong impact of the crisis on the development of the economy, which helped to reduce the differences. Spanish GDP declined by 10.8% in the year of the outbreak of the pandemic, barely 5.9% of the Community countries’ total.

Hygiene reinforcement

By items, since 2019, spending on economic policy has increased by about 3 points, pensions by 1.4 points, health by 1.2 points of GDP, a figure similar to that recorded in the case of increased spending on unemployment. Beneath the point is an increase in disbursements to education, social security and defense and security. was reduced that the only game was an interest expense is earmarked Due to the decline in interest rates experienced by 2021. The behavior was similar to that shown by European countries as a whole.

This has not happened with spending on large welfare state programs approved by the executive in recent years. The increase in pension costs is notable, which puts Spain above the European average since 2019. The same did not happen with the health department, which remained in place during 2020 despite robust arrangements below that registered by the average of the Community countries as a whole, “During the pandemic, all countries increase spending on health,” the report shows, recalling that Cyprus, the Czech Republic and Latvia were the members that boosted this item the most. Ireland, Romania and Sweden barely increased their health spending by 0.5 points each. Spain did this at 1.2 points of GDP.

When the consequences of the pandemic were in their final stages, EU members had to bear the brunt of the outbreak of war in Ukraine. The conflict sparked an inflationary crisis that is still with us, and which forced all European partners to increase public spending once again in order to fuel relief measures able to cushion the impact of the continuing rise in house prices. Can go Spain was no exception. Expenses increased by 3.84% to 23,433 million, 634,297 million euros. Even then, Revenue from collections offsets the mismatch,

Tax agency signed up in 2022 a record year, by collecting 255,463 million euros through tax revenue. The 14.4% growth compared to 2021 is driven by consumer spending, wages and pensions, and corporate profits.

Nation World News Desk
Nation World News Desk
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