The Spanish government, under Prime Minister Pedro Sánchez, approved the public spending ceiling for 2021, which will amount to €196.1 billion (US$232.0 billion). This is the overall spending of the general state budget for 2021 and represents a historic increase of 53% compared with 2020 figures.
Spain’s public deficit will lead to 7.7% of its gross national income (GNI) in 2021. According to the government’s economic forecast, which was published on October 6, 2020, together with the 2021 spending ceiling approval, Spain’s GNI will drop by 11.2% in 2020 and increase again by 7.2% in 2021.
With the overall spending approved, Sánchez plans to present the 2021 budget bill to the parliament in the following weeks. Notably, due to years of political instability, the 2018 budget of conservative former Prime Minister Mariano Rajoy continues to apply in Spain.