Palma de Majorca.—The current Partido Popular Balearic government will only be investing 3.3 euros to every 100 it spends with public funds in 2012.
The previous Socialist coalition government under Francesc Antich invested 5.2 percent of all it spent in 2010. Under the heading of investment, it is possible to include capital transfer which is money for other government institutions - for them to invest.

If these capital transfers are put together and compared with the most recent budget of Francesc Antich (2010, as the 2011 budget was rolled over from the previous year) the downturn in investment is seen as being even more acute.

Between direct investment and capital transfers, the Balearic government of José Ramón Bauzà (above far right) will be spending 11.4 percent of next year's budget on investment, whilst the previous Socialist coalition allocated 19.97 percent to investment.

When analysing just how Bauzà is to be using public funding in the 2012 budget, the most noticeable feature is the amount he is going to be (re)paying to banks. Around 779 million euros, more than 21 percent of the total budget will be going to banks. In interest alone, the Balearic government will be paying 200 million euros.

Under Francesc Antich, the amount was slightly less - 175 million euros - 5.17 percent of the total budget.
Apart from investment, there are two other areas of the budget which have gone right down under the new Partido Popular government. The first is the amount spent on staff salaries and the other is the sum allocated to pay costs.

By making cuts in these two sectors alone, the government of Bauzà will be saving 54 million euros.
There is also a separate saving, a government spokesman said, of 10 million euros in transfers, earmarked to pay costs. Even though we're not yet into the New Year, Regional Finance Minister Josep Ignasi Aguiló is hopeful of getting even more money from Central Government once incoming Spanish Prime Minister Mariano Rajoy has got his own (Partido Popular) financial house in order and published a budget for 2012. In fact, the Balearic budget states that public spending may rise or fall in 2012, depending on funding from Madrid.

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