The Balearics needs more investment from Madrid. | Majorca Daily Bulletin reporter

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The Balearic government is going to have to run up a debt of 1.2 billion euros in order to balance the budget books for 2023 and one of the main reasons is the shortfall of reciprocal payments from central government to the tax revenues paid in to Madrid by the Balearics.

One of the issues that weigh most heavily in the process of drawing up the budget is not knowing the exact amount of money which will be allocated for the Balearics by central government under the regional funding system.

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The Balearic government hopes that the meeting of the Fiscal and Financial Policy Council, which is where this information is given, will be held at the end of July, and that it will provide a solid base of income on which to base the budget.

This year the Government has received 2,684 million euros in payments on account and settlements, but this funding has been supplemented with aid from various Covid funds that will not be available in 2023. 

Covid aside, the lack of just funding from Madrid has always been a problem for the Balearic government, whichever party has been in power over the years. It was one if the reasons the tourist tax was introduced; the Balearics needed to find ways of filing the financial gaps left by Madrid.