Incredible but true! The Balearic government has a funding crisis. I say incredible because the government has introduced measures over recent years to raise extra cash but it is still not enough.

The controversial tourist tax raises in excess of 100 million euros for the Balearic government which has a financial black hole in its budget. Instead of repaying the big debt mountain the government may have to borrow more money to balance the books.

All this at a time when the Balearic government claims that the tourist industry is in a healthy state and revenue should be on the rise.

Granted that the Balearics are still seeking extra money from the central administration in Madrid but I must say that I find it rather difficult to understand why the government is in such financial dire straits.

The economy is growing, not as much as was hoped but it is growing, and overall the Balearics appears to be in a good financial situation although there are big concerns over the summer season, but from the industry rather than the government. Some sections of the tourist industry would like to see the tourist tax actually scrapped which would make the funding crisis at the Balearic government even more pronounced.

There is no quick financial fix, although some political parties have called for the number of civil servants to be reduced and the actual local government scaled back. More cash will have to be found and soon if a financial crisis is to be averted.


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John Parkinson / Hace about 1 year

Perhaps the answer could be linked to your comments a few weeks back that those in charge do not have any qualifications to effectively administer and spend for the benefit of the island. Not complaining about the tourist tax but strongly object to not being spent wisely. Anybody can spend money and if Mallorcians are happy with the situation, fine,but it is a lazy attitude to take thinking the tax will always bail them out