Illes Balears has closed the year 2024 with a significant reduction in its debt, reaching €8.426 billion, which represents 18.8% of GDP. This percentage is the lowest recorded since the first quarter of 2012 and the best absolute figure since the end of 2015, according to the latest data published by the Bank of Spain.
Since the beginning of the legislature, in the second quarter of 2023, the Autonomous Community of the Balearic Islands (CAIB) has managed to reduce its debt by €555 million. This represents a decrease of nearly 3.5 percentage points in the debt-to-GDP ratio, according to information from the Directorate-General for the Treasury, Financial Policy and Heritage.
In the last quarter of 2024, the debt was reduced by €240 million, implying a drop of 0.9%.
Tax cuts without compromising the economy
The Vice President and Minister for Economy, Finance and Innovation, Antoni Costa, together with the Director-General for the Treasury, Financial Policy and Heritage, Susana Pérez, during the presentation of Balearic Islands’ debt figures. Photo: CAIB.
The Vice President and Minister for Economy, Finance and Innovation, Antoni Costa, has highlighted that this evolution confirms that it is possible to reduce taxes for middle- and low-income earners without compromising the community’s financial balance. “As we have always defended, in a context of economic growth, taxes can be lowered, investment in essential services can be increased, and debt can be reduced,” Costa stated.
The Balearic Islands Economic Outlook Report supports this positive trend, as can be read in this article.
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