\ The figure represents an increase of 187.3 million euros (+2.6%) compared to that approved for the financial year 2023
\ Spending on health will increase by 113.3 million euros, and on education by 94.4 million euros, which represents the highest social spending in history.

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Approval of the Draft Law on the General Budget of the Autonomous Communities for 2024

The Consell de Govern, at the proposal of the Ministry of Economy, Finance and Innovation, has approved in an extraordinary session on Thursday the draft law of the general budget of the Balearic Islands for the year 2024, which has been set at 7,320.70 million euros. In the next few days it will begin the corresponding parliamentary procedure to be finally approved before the end of 2023, thus coming into force on 1 January 2024.

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

Social spending, that for Education, Health and Social Services, will be the highest in history, 219.7 million euros more than in 2023 (+5.7%) and, for the first time, above 4,000 million euros (4,060.1 million, to be precise). 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 year (3.5%).

In addition, funding for the island councils also marks a new record high, standing at 581.1 million euros, 5% more than in 2023 (+27.8 million). Looking at the distribution by island, 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).

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, which represents an increase of 156.6 million (+15.7%) compared to the figure for 2023.

The Sustainable Tourism Tax (ITS) will provide 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 the Natural Environment; and 40 million for the Regional Ministry of the Sea and the Water Cycle.

Thus, more than half of the ITS (50.7%) will go to environmental policies (investments in water and the natural environment, as well as 4 million for the Menorca Biosphere Reserve, under the Ministry of the Presidency and Public Administrations). And, in the case of the Regional Ministry of the Sea and Water Cycle, 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 represents 103.82 million euros, which is 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 draft law provides for a 0.5% reduction in the autonomous personal income tax bracket 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, for the first time, of zero deficit, i.e. a balanced budget. In addition, next year it is estimated that public debt will be reduced by 32.29 million euros (8,750.61 million euros in total), compared with the forecast for the end of 2023 (8,782.9 million euros). Looking at the debt-to-GDP ratio, it will stand at 24% in 2024, 0.9% lower than the 2023 closing estimate. This would be the lowest figure since 2012, when it stood at 23.6%.