Spanish national debt soars to record high of 93.9 per cent of GDP

Although this is below the limit imposed on Spain of 94.21 per cent of the Gross Domestic Product, it is still the highest ever seen in the country and the majority of it was racked up by the central government.

Of the 960.64 billion euros owed as at the end of last year, a total of 836.13 billion corresponds with the central government – a total of 81.7 per cent of the GDP – compared to 73.9 per cent at the end of 2012.

In total, public debt at State level has gone up by nearly 10 per cent in a year, despite the PP government president Mariano Rajoy insisting that the economy is improving.

In real terms, the greatest increase was seen in the 17 regional governments, with a debt increase of 11.51 per cent, reaching 206.8 billion – also marking a new record high.

The most heavily-indebted region is Catalunya, who closed last year at 57.2 billion in the red – 11.21 per cent more than at the end of 2012.

It is followed by Valencia which, with a rise of 8.22 in public deficit, is now overdrawn by 31.9 billion, and Andalucía with a debt increase of 16.33 per cent to 23.9 billion.

Valencia and Catalunya have long complained they are the most underfunded regions in Spain by the central government, despite being two of the three most densely-populated along with Madrid.

In percentage terms, Valencia has the highest debt at 32.9 per cent of its Gross Regional Product, followed by Castilla-La Mancha at 31.6 per cent, Catalunya at 29.9 per cent and the Balearic Islands at 25.6 per cent.

Town councils closed 2013 with an aggregate minus figure in the bank of 41.5 billion euros, a rise of 0.7 per cent on the year before, led by Madrid city council at just over seven billion in the red and Barcelona at 1.11 billion – increases of 5.3 per cent and 5.77 per cent respectively on the end of 2012.

And the Social Security pot, funded by workers out of their salaries or by the 300-euro-a-month self-employed stamp and which pays for sickness benefit, dole money and pensions, ended last year with a debt of 17.2 billion euros.

These numbers, released by the Bank of Spain on Friday, are a 'clear risk' to Spain's economic recovery, says chairman of the BBVA bank Francisco González.

During the annual shareholders' meeting, González said that although Spain had technically come out of recession, its public debt was a 'clear sign' that the country was a long way from recovery.

Vice-chair and delegate consultant for CaixaBank, Juan María Nin, warned the Spanish government about being 'too overconfident' about the national economy since it was still 'incipient and replete with risk'.

Its biggest challenges remain record-high unemployment levels – 27 per cent, or six million people, which relate only to dole office statistics and do not include those who have been unable to register with the job centre and claim benefits – and a public debt which, until now, has been kept top secret, Nin states.

Spain's debt will continue to rise because the country's expenses are higher than its income, and in the CaixaBank boss' opinion will rise to 100 per cent of the GDP by the end of this year, exceeding 105 per cent by the end of 2015.

“If this trend continues, the State's budget priority will become that of paying off its public debt, ahead of education and healthcare,” warns Nin.