Palma.—Palma City Council will get two million euros less than originally planned from Central Government this year, Economy and Tax Councillor Julio Martinez said yesterday.

Madrid is going to provide 78 million euros from national taxation funds, and not the 80 million euros which formed part of Palma's 2012 budget.
Martinez said that from January to June this year, Central Government had been funding the City Council to the tune of 6.1 million euros but when the State budget was set, an “adjustment” had had to be made.

On top of this short funding, Palma City Council has been having to pay back Central Government a surplus of State funds which the Council reportedly received in 2008 and 2009. This has meant that in cash terms in July and August this year, Palma Council has only received 4.8 million in subsidies. However, from September to the end of the year, monthly payments to the City Council will be 5.2 million euros.

Martinez said that the 2 million euro shortfall has meant that the Council won't be able to contribute as previously planned to International Cooperation and Development projects or to the extent it would have wished to some social service programmes.