The figure of 7,320.70 million euros represents an increase of 187.3 million euros, 2.6% more, compared to the figure approved for the fiscal year 2023. Expenditure in Health increases by 113.3 million Euros, and in Education by 94.4 million Euros

The Consell de Govern, at the proposal of the Conselleria de Economía, Hacienda e Innovación, has approved in an extraordinary session this Thursday the general budget bill of the Balearic Islands for the year 2024, which has been set at 7,320.70 million euros. In the coming days it will begin the corresponding parliamentary processing to be finally approved before the end of 2023, thus entering into force on January 1, 2024.

This figure represents an increase of 187.30 million (2.6%) compared to that approved for the 2023 fiscal year. The non-financial budget, to which Parliament gave the green light last Tuesday, November 7, amounts to 6,365.50 million (418 million more, 7.03%), and the financial budget, which will serve to finance debt, stands at 955.20 million (a decrease of 230.70 million compared to the 2023 budgets, a drop of 19.5%).

Social spending, that earmarked for Education, Health and Social Services, will be the highest in history, exceeding that of 2023 by 219.7 million euros (+5.7%) and, for the first time, above 4,000 million (4,060.1 million, specifically). The Education budget will be 1,353.8 million euros, 94.4 million more than in 2023 (7.5%). As for Health, it will have a budget of 2,354.4 million euros, 113.3 million more (5.1%). Finally, the budget for Social Services will be 351.9 million euros, 12 million more than the current fiscal year (3.5%).

In addition, funding for the island councils also marks a new all-time high, standing at 581.1 million euros, 5% more than in 2023 (+27.8 million). Looking at the distribution by islands, Mallorca will receive 411.5 million (+19 million), Menorca 75.2 million (+3.7 million), Eivissa 82.3 million (+4.5 million) and Formentera 12.1 million (+0.6 million).

presupuestos 2024

Moment of the press conference after the Consell de Govern. Photo: Govern Balear.

More than 1 billion in investments

For the first time, the investment budget for 2024 will exceed 1 billion euros. Specifically, it will stand at 1,154.2 million, representing an increase of 156.6 million (+15.7%) compared to the 2023 figure.

The Sustainable Tourism Tax (ITS) will facilitate investments of up to 136.07 million euros, distributed as follows: 28 million for the Regional Ministry of the Presidency and Public Administrations; 26 million for the Regional Ministry of Tourism, Culture and Sports; 7 million for the Regional Ministry of Economy, Finance and Innovation; 10 million for the Regional Ministry of Housing, Territory and Mobility; 25 million for the Regional Ministry of Agriculture, Fisheries and Natural Environment; and 40 million for the Regional Ministry of the Sea and Water Cycle.

Thus, more than half of the ITS (50.7%) will go to environmental policies (investments in water and natural environment, plus 4 million for Menorca Biosphere Reserve, framed in the Ministry of Presidency and Public Administrations). And, in the case of the Conselleria del Mar y del Ciclo del Agua, 86.27 million euros must be added from a finalist fund created specifically for projects related to the water cycle.

On the other hand, the insularity factor transferred from the State amounts to 103.82 million euros, which are divided as follows: 21.53 million for the Regional Ministry of Education and Universities; 5 million for the Regional Ministry of Economy, Finance and Innovation; 14.3 million for the Regional Ministry of Families and Social Affairs; 24 million for the Regional Ministry of Housing, Territory and Mobility; and 38.98 million for the Health Service of the Balearic Islands (Ibsalut).

Tax reform

The bill contemplates a 0.5% reduction in the autonomous tax bracket of personal income tax for middle and low incomes, those under 30,000 euros. This affects 3 out of 4 taxpayers. For incomes over 30,000 euros, the reduction is 0.25%. In total, there will be 45 million euros of annual savings for the citizens of the Balearic Islands, and which continues the roadmap established last July with the elimination and reduction of the Inheritance and Gift Tax (60 million annual savings), and the Transfer Tax (15 million annual savings).

Deficit and public debt

The non-financial budget foresees a scenario for 2024 of zero deficit, i.e. a balanced budget. In addition, next year it is estimated to reduce public debt by 32.29 million euros (8,750.61 million total), when compared to the 2023 closing forecast (8,782.9 million). Looking at the volume of debt over GDP, in 2024 it will stand at 24%, 0.9% less than the 2023 closing estimate. This would be the lowest figure since 2012, when it stood at 23.6%.