Canary Islands consolidates itself as one of the autonomous regions with the least debt in Spain

The archipelago closed 2021 with a public debt of 6,434 million euros, 15.3% of its GDP

EKN

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EKN

May 22 2022 (09:03 WEST)
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Canary Islands closed the year 2021 as one of the autonomous communities with the lowest public debt, both in relative and absolute terms, according to data from the Independent Authority for Fiscal Responsibility (AIReF).

The latest "Report on monitoring the objective of budgetary stability and public debt and spending rule for the year 2021", published by AIReF this past Tuesday, indicates that the Canary Islands concluded the year 2021 with a public debt of 6,434 million euros, which is equivalent to 15.3% of its Gross Domestic Product (GDP).

This performance places the islands as the third best autonomous community in relative terms, after Madrid, with 14.8% of GDP and Navarra, with 15.2%. In absolute terms, it recorded the second best figure, only surpassed by Navarra, with 3,617 million.

The Canarian Vice President and Minister of Finance, Budgets and European Affairs, Román Rodríguez, has highlighted that the level of public debt in the Canary Islands "puts us in a good position in the event that we had to resort to private financing in the future, because the markets see us as a solvent and reliable administration."

In addition, he recalled that the budgetary priorities of the Government of the Canary Islands include strengthening essential public services, supporting productive sectors and increasing public investment, "without increasing debt."

 

New suspension of fiscal rules

The AIReF report has coincided with the likely announcement by the European Union on the extension of the suspension of fiscal rules for another year.

A decision that, if materialized, "would be very good news for all Canarian, Spanish and European public administrations, since we can continue to respond to the role we have been entrusted with now in a reinforced manner as drivers of economic activity and as protectors of society," according to the vice president.

Rodríguez assured that this year still drags on the consequences of the pandemic and that the war in Ukraine has now joined it, which anticipates a difficult 2023 as well, "so the suspension will help maintain the intensity of public effort."

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