After having cleared some of the debt left behind by the former Socialist-led coalition council, Palma City's Council has less that 400 million euros to last it to the end of this year.
The budget was revealed by the Councillor for Finance, Julio Martinez yesterday, but he did not go into any further details as to how the budget is going to be spent.
That, apparently, will be revealed by the Mayor, Mateo Isern, on January 24.
However, he did make it clear that severe cuts are going to have to be made this year and investments in new projects will be minimal.
As far as City Hall is concerned, it is going to be a case of covering the current financial commitments and gradually clearing the council's deficit.
The council will be looking at other ways of raising extra funds, such as raising the IBI property tax and the rates.
The final budgetary proposals will be put before the council for a final vote on February 7.