The public sector deficit in 1996 was equivalent to 4.3% of GDP (compared to 3.8% in 1993 and 4.4% in 1992). Because of Spain's desire to enter the European Monetary Union, it had to meet stringent limits on its public debt and finances, including a 3% debt-to-GDP ratio. The government trimmed the budget by reducing the civil service payroll and limiting transfers to government-owned companies.

The US Central Intelligence Agency (CIA) estimates that in 2000 Spain's central government took in revenues of approximately $105 billion and had expenditures of $109 billion including capital expenditures of $12.8 billion. Overall, the government registered a deficit of approximately $4 billion. External debt totaled $90 billion.