Spain's debt reaches 100% of GDP as AIReF urges €10 bn spending cuts

The Bank of Spain reported that public debt amounted to €1.72 trillion in May 2026, putting the debt‑to‑GDP ratio at 100.2%, two points lower than a year earlier. The increase includes a €1.58 trillion central‑government balance and rising liabilities of regional and local authorities.

The Independent Authority for Fiscal Responsibility (AIReF) warned that Spain must cut public spending by more than 0.6 % of GDP – roughly €10 billion – to comply with the national spending rule for 2026. AIReF estimates net primary spending will grow to 6.4 % of GDP, far above the 3.5 % ceiling, and notes the central government has still not presented the legally required Economic‑Financial Plan.

Despite record‑high tax revenues, the national deficit widened sharply in the first five months of 2026, reaching €14.2 billion – a 31 % increase over the previous year. Transfers to autonomous communities, interest payments on debt and contributions to the EU absorbed most of the revenue gains, while investment spending fell by about 9 %.

AIReF’s regional assessments also flagged pressure on health‑care budgets and professional‑career reforms in several autonomous communities, underscoring the broader fiscal strain across Spain’s public finances.