Finance minister Rosario Sánchez, presenting the budget on Wednesday. | Govern de les Illes Balears

The Balearic government has approved a spending ceiling of 5,176.64 million euros for the 2022 budget. A record amount, there is an increase of 450 million euros (9.5%), partly due to European recovery funds - 187 million from the recovery and resilience mechanism.

Finance minister Rosario Sánchez said on Wednesday that the budget will allow public services to be maintained while also boosting investment for economic reactivation and diversification. The government estimate for non-financial revenue in 2022 is 4,672 million euros. The difference between this and the figure of 5,176 million is explained by the deficit margin and national accounting adjustments.

Of the income sources, there are 2,673 million euros from the regional financing system and 765 million euros of other external contributions - state and European. For tax revenue specific to the Balearics, there is a figure of 388 million, 50% more than for the current year.

The bulk of the revenue therefore comes from the regional financing system, albeit this has a seven per cent lower contribution than in 2021.

In presenting the budget outline at a press conference, Sánchez stated that the spending ceiling will allow the government to maintain the reinforcement of basic public services. With the addition of the insularity factor payment from the Spanish government and European funds, the government will be able to improve and transform the economic system, "making it more resilient, more productive and more competitive".