COVID-19 y finanzas públicas

Abstract

COVID-19 has been a tremendous shock to our society, in terms of loss of life, but also in economic terms. The Spanish public sector has performed a contra-cyclical policy, having increased the level of expenditures and by means of a reduction of revenues due to the performance of the automatic stabilizers, which has generated an extraordinary increased in the public deficit and in the level of indebtedness. In the short run, this has not caused an erosion of its financial credibility, but this does not preclude that in the medium, or even in the short run, the public sector has to carry out measures to achieve the sustainability of its public finances.