The budget for the Balearics in 2016 is destined to be the region’s highest ever, according to government spokesperson, Marc Pons. In announcing the content of the budget draft agreed by the cabinet, Pons said today that it represents “a turn to the left” which “will redistribute wealth and diminish inequalities”. He added that “the people come before the economic numbers” and that the accounts for 2016 will be “the first step in the recovery of lost rights and basic services”.
The budget will rise by 5% (205 million euros) to 4,241 million in 2016 and will involve adjustments to tax as well as the introduction of a new one - the tourist tax. The estimation of revenue for this has been set at 50 million, described by finance minister Catalina Cladera as a “prudent provision”, given that the former eco-tax had envisaged an annual revenue of 80 million.
The tax burden on individuals will fall on those with high incomes, says Cladera. Thus, for the tax on property transfers there will be a new element starting from one million euros that will affect the purchase of high-value properties. This will affect 2.6% of all transactions. On income tax, the cut introduced by the previous government is - in general - to be maintained but it will rise for those with incomes of 70,000 euros or more, something that will apply to 1.6% of tax declarations. Wealth tax will not be paid on the first one million, while inheritance and gift tax will only apply from 700,000 euros.
Social spending will rise by 6.05%, Cladera explained, and total 2,549 million, while funding for the island councils will go up by 11% (by 300 million). The total tax revenue for 2016 is calculated as being 3,221.26 million euros, while public spending is placed at 3,478.91 million.
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