The Government increases public spending by 50% in 2021, to 196,097 million

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He public spending in Spain will experience in 2021 a unprecedented growth due to the pandemic. The Council of Ministers approved this Wednesday a spending ceiling of 196,097 million euros, an increase of 53% compared to 2018 and that already incorporates more than 27.4 billion that the Government expects to incorporate a first tranche of the EU Recovery Fund.

Along with the spending ceiling, the Council of Ministers has given the green light to the macroeconomic picture for 2020 and 2021 that foresees that this year will close with a drop in GDP 11.2% and an unemployment rate of 17.1% and the “recovery” that the Government expects for the next one, which, however, will not be accompanied by the part of unemployment. In 2021, GDP growth of 7.2% is expected while unemployment will remain at 16.9%.

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