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MADRID, March 30 ― Spain's budget deficit widened to its highest level in 11 years in 2020 as the pandemic battered its economy, the government said yesterday.
Spain is one of the worst-hit countries in Europe by the coronavirus crisis, which has left 75,000 people dead in the country and caused the economy to sink by 11 per cent last year.
The country's public deficit soared to 10.1 per cent of output last year, compared to 2.9 per cent in 2019.
“The increase in public spending to fight the pandemic, combined with social measures to help families, workers and businesses are the main reasons for this increase,” the budget ministry said in a statement.
The ministry said 85 per cent of the increase in public spending in 2020 was due to “measures adopted expressly to mitigate the socioeconomic effects of the pandemic”.
These include a furlough scheme for people laid off from their jobs because of the pandemic which was recently extended until May, and financial aid for self-employed workers.
The government's budget for this year includes record spending on health and social care, and a hike in infrastructure investment, aimed at supporting an economic recovery following a steep recession due to the pandemic.
But the deficit is less than the government's target for the year, and below forecasts of the European Commission and the International Monetary Fundy. ― AFP
Source: Malay Mail
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