10/10/2013 00:00
TW
0
STAFF REPORTER

PALMA
THE Balearic government is to present its budget for 2011, even though it doesn't have the necessary approval from opposition parties, government spokesperson, Joana Barcelo said yesterday. The total amount of spending, she reported, will amount to 3'200 million euros, 184 million (5.4 percent) less than last year.

Speaking after a government meeting, Barcelo said that the regional Tax and Economy ministry is putting the finishing touches to the budget proposals, the final date for which is 30th October.

Barcelo, who is also the Balearic Minister for Tourism and Employment, said that the reduction in spending levels is being introduced as a result of economy demands being made by European Institutions which want the public deficit brought down by 1.3 percent.

PUBLIC SPENDING
She furthered that despite the cuts, the Balearics will continue to enjoy a “large” amount of money for public spending with “significant” subsidies from Central Government.

Barcelo said that in the coming weeks, the Socialist led regional government will do “everything possible” to persuade the opposition parties - who are in a majority in the Balearic Parliament - to agree the budget proposals for 2011. If the government fails to secure cross-party backing, said Barcelo, the budget figures which have been approved for this year will be extended into 2011.

All that will be required, she explained, will be for cuts to be made to reduce the public deficit by 1.3 percent.
But persuading the opposition parties to back the Socialist budget proposals will not be easy.
The Partido Popular (PP) and the Majorcan Unionists (UM) have already said that they will not support the proposals if the Socialist coalition government insists on raising taxes.

The Bloc, a coalition partner, said that it is in agreement with taxes going up but only on the highest incomes in the Balearics.
Meanwhile, all three parties on different political divides, the PP, the UM and the Bloc are demanding that funding should not be cut in education, health and social services.

Barcelo acknowledged yesterday that it would be “much better” if different budget proposals were approved, but that she was aware of the “difficulties” existed in reaching cross-party consensus.

Earlier this week, the Balearic President, Francesc Antich, told parliament that the 35 percent cut in public funding from central government is going to restrict a number of projects next year.

CIVIL SERVICE WAGE FREEZE
The potential five percent cut in civil service wages could also be over ruled meaning that potential savings of public funds in that sector could be lost.

It was revealed on Thursday night that the Spanish High Court is going to examine Central Government's proposed wage cuts with some lawyers claiming that it goes against the constitution.

If the High Court rules against the wage freeze, then central and regional governments will have to seek out other ways of saving public funds and introduce new austerity measures.