Balearic President, Francina Armengol & Finance Minister, María Jesús Montero.

Balearic President, Francina Armengol & Finance Minister, María Jesús Montero.

03-11-2021Pere Bota

The Government Council is expected to approve record budgets of more than 6,300 million euros for next year, a spectacular increase compared to the 5,800 million for 2021.

The extra 500 million euros will come from three sources; European funds, Government taxes and 183 million euros from the Central Government to compensate for insularity.

The Governmen's income forecasts are highly optimistic, with property transfer tax alone expected to amount to 679.6 million euros, compared to 416.5 million euros in 2021 and these forecasts are based on objective data.

Up until September this year, 547 million euros had been collected, which is more than was expected for the entire financial year and forecasts for 2022.

The signifiant increase in eco-tax from 56.9 million euros to 140 million euros, is because the tax that hoteliers usually pay was deferred until 2022.

Debt & Expenses

The accounts will be presented by Hisenda Minister, Rosario Sánchez after the Government Council meeting on Thursday and they foresee a debt of 1,200 million euros. Almost all of that will be used to repay the Government’s debts with the banks. The Government has set a maximum deficit limit of 0.6%.

Spending Forecasts

Education, Health and Social Services will take up more than 70% of the 2022 budget, but money will also be spent on other projects, such as the tram to Son Espases, thanks to European Union funds.

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