Palma.—The deficit facing the Balearic government at this moment in time is around 1'000 million euros, but regional authority sources said yesterday that it is crucial to bring this figure down by a half.

The new governing Partido Popular (PP) is counting on 350 million euros of currently blocked cash flow being in the pipeline but this apparently does not mean that the money is sitting in the bank waiting to be used. The millions are rather a figure that has been set aside for contingencies but not to be used for day to day spending.

Over the next few weeks, the government of José Ramon Bauza has the intention of presenting an “urgent measures” law with the idea of getting it rushed through Parliament and in force before the end of the summer.

Any financial measure that is adopted must be approved by the Tax Policy Board.
The Central Government's Ministry of Economy is in possession of a set of proposals that was provided by the outgoing Balearic government on how to create budget stability and bring down the deficit. The Central Government department led by Miniser Elena Salgado still hasn't approved it. Until the green light is given for the stability plan to be put in place, the regional government won't have authorisation to increase its current debt and pay suppliers.

The Balearic government recognise that the situation has become very serious. Unpaid bills were highlighted during the election campaign and even regional Parliament is in the red acknowledging that it only guarantee cash for another two months salaries for government workers.

However, Jose Ramon Bauza's new PP team say that there is no need for concern over salaries and that there is a credit facility for such payments in the future. Bauza is keen to create financial confidence.

Comments

To be able to write a comment, you have to be registered and be logged in.

* Mandatory fields

Currently there are no comments.