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{{ANETextoEpigrafe|epigrafe=Public expenditure}}
[[File:Logo Monografía.jpg|left|thumb|300px|Map: Gasto del EstadoPublic expediture of the National Administration. 2019-2020. Spain.]][[File:Logo Monografía.jpg|right|thumb|300px|Map: Gasto de las comunidades autónomasPublic expediture of the Regional Administrations. 2019-2020. Spain.]][[File:Logo Monografía.jpg|left|thumb|none|300px|Statistical graph: Evolución del gasto del EstadoEvolution in the public expediture of the National Administration. 2015-2020. Spain.]][[File:Logo Monografía.jpg|right|thumb|none|300px|Map: Gasto autonómico por habitantePublic expediture of the Regional Administrations per capita. 2020. Spain.]][[File:Logo Monografía.jpg|left|thumb|300px|Map: Déficit de las administraciones públicas en los países de la Unión EuropeaPublic deficit in the members states of the European Union. 2011-2020. Europe. ]][[File:Logo Monografía.jpg|right|thumb|none|300px|Map: Deuda acumulada de las comunidades autónomasCumulative public debt of the regional Administrations. 2008-2020. Spain.]]The pandemic tested the capacity of the Public Administrations (national, regional and local) to react to the effects of the crisis on the business fabric and on society in general, especially on a social level (health, education and labour market).
On the one hand, the sharp drop in economic activity forced implementing and extending direct support mechanisms, such as furloughs, which mobilised large amount of resources to cushion the impact of the pandemic on employment and on the business fabric and pave the way for a rapid recovery. On the other hand, basic public services, such as health and education, required additional funding to serve the population directly affected by the disease, roll out a mass vaccination programme, and ease non-face-to-face teaching modes and smaller student/teacher ratios.
Within Spain, this rise in public deficit entailed a further increase in the cumulative debt of the regions in relation to their Gross Domestic Product (GDP). This ratio had been stabilising or even slightly decreasing after the peak from 2015 and 2016 (see the map on the Cumulative public debt of the Regional Administrations). Just as there are disparities between the different EU states, also the different Spanish regions show sharp contrasts. In some, such as the Region of Madrid (Comunidad de Madrid), the Basque Country (Euskadi/ País Vasco) and Navarre (Navarra), the debt did not exceed 20% of GDP in 2020 and indebtedness with the national administration was non-existent. Others, such as the Region of Valencia (Comunitat Valenciana), are in debt to the tune of nearly 50% of their regional GDP, and four-fifths of this debt is owed to the national Public Treasury. These historical disparities in regional debt levels, which were further sharpened by the pandemic, may largely be explained by regional differences in income per capita, tax bases and the complexity of the tax revenue distribution system between the different regions in Spain.
