Presentation of Balearics 2021 draft budget

Finance minister Rosario Sánchez (right) presented the draft budget on Monday.

02-11-2020Govern de les Illes Balears

The Balearic government's budget for 2021 does not include any tax reductions or cuts to the number of senior officials, measures that opposition parties have been calling for.

In presenting the draft budget, finance minister Rosario Sánchez said that the only new tax being contemplated is one aimed at town halls which do not meet recycling targets. She added that it will be the "most social budget" in history, with 3,340 million euros earmarked for social spending.

In this regard, health will receive 1,933 million euros; education will have 1,053 million, social services 215 million, there will be 107 million more for employment and 30.8 million for housing.

Sánchez explained that this is an "extraordinary" budget for dealing with the emergency situation by responding to health needs, the protection of people and the recovery of the economy. Although the initial spending figure will in total be 5,551 million euros, this will top 6,000 million because of European funds to offset the effects of Covid-19.

Despite scheduled debt repayments of over 1,000 million euros, the regional debt will rise to an all-time high of 9,300 million because of an increased deficit of 295 million.

Salaries for senior officials and others in the public sector will be frozen next year, while the 22,000 euros per year living allowance for senior officials who work away from their normal place of residence will continue.

In terms of personnel, the minister said that the government will be prioritising the recruitment of more health workers, tracers, teachers and employment offices' staff.

The government will have more money thanks to contributions from Spanish government and European funds, but it forecasts that there will be a decrease in revenues from its own taxes. Tourist tax income is forecast to be 56.9 million euros, under half of what had been estimated for 2020, while property sales tax revenue is calculated to drop from the 470 million which had been forecast for this year to 313 million.

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