Spain - Public finance

The public sector deficit in 1996 was equivalent to 4.3% of GDP (compared to 3.8% in 1993 and 4.4% in 1992). Because of Spain's desire to enter the European Monetary Union, it had to meet stringent limits on its public debt and finances, including a 3% debt-to-GDP ratio. The government trimmed the budget by reducing the civil service payroll and limiting transfers to government-owned companies.

The US Central Intelligence Agency (CIA) estimates that in 2000 Spain's central government took in revenues of approximately $105 billion and had expenditures of $109 billion including capital expenditures of $12.8 billion. Overall, the government registered a deficit of approximately $4 billion. External debt totaled $90 billion.

The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.


REVENUE AND GRANTS 100.0% 105,000
Tax revenue 91.7% 96,327
Non-tax revenue 6.3% 6,565
Capital revenue 0.3% 360
Grants 1.7% 1,748
EXPENDITURES 100.0% 109,000
General public services 2.5% 2,776
Defense 3.2% 3,478
Public order and safety 2.9% 3,214
Education 3.5% 3,847
Health 5.9% 6,379
Social security 39.6% 43,200
Housing and community amenities 0.4% 417
Recreation, cultural, and religious affairs 0.5% 573
Economic affairs and services 4.7% 5,136
Other expenditures 24.4% 26,548
Interest payments 12.3% 13,432

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