Mallorca once again sidelined by central government

The Balearic Government will have to go into debt 1.2 billion euros for balancing the budget books for 2023 and one of the main reasons is the lack of reciprocal payments from the central government to tax revenues paid to Madrid by the Balearic Islands.

One of the problems that weigh the most in the process of drawing up the budget is not knowing the exact amount that will be allocated to the Balearic Islands by central government under the regional financing system.

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 strong revenue base on which to base the budget.

This year, the government received €2,684 million installments and payments, but this financing was supplemented by aid from various Covid fund which will not be available in 2023.

Covid aside, the lack of fair funding from Madrid has always been a problem for the Balearic government, regardless of which party has been in power over the years. This was one of the reasons why the tourist tax was introduced; the Balearics had to find ways to fill the financial gaps left by Madrid.

Comments are closed.