The figure represents an increase of 148.4 million euros (+2%) compared to the figure approved for 2024.
The increase of 86.7 million euros in Health, 63.8 million euros in Education and 37.1 million euros in Social Services represents the highest social spending in history.
The Consell de Govern, at the proposal of the Conselleria de Economía, Hacienda e Innovación, has approved in an extraordinary session this Wednesday the Bill for the general budget of the Balearic Islands for the year 2025, which has been set at 7,469.1 million euros. In the next few days, it will begin the corresponding parliamentary procedure to be finally approved before the end of 2024, thus coming into force on 1 January 2025.
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The government approved the draft law on the general autonomous regional budget for 2025, which will reach 7,469.1 million euros
This figure represents an increase of 148.4 million (2%) compared to the figure approved for 2024. The non-financial budget, which Parliament gave the green light to on Tuesday 22 October, amounts to 6,562.88 million (197.4 million more, or 3.01%), and the financial budget, which will be used to finance debt, stands at 906.3 million (a decrease of 48.9 million compared to the 2024 budget, a fall of 5.1%).
Social spending, earmarked for Education, Health, Social Services and Housing, will be the highest ever (4,447.8 million euros), 225.4 million more than in 2024 (+5.3%). The Education budget will be 1,416.5 million euros, 63.8 million more than in 2024 (4.7%). Health will have a budget of 2,455 million euros, 86.7 million more (3.7%). The budget for Social Services will be 389.6 million euros, 37.1 million more than the current year (10.5%), and the budget for Housing will be 186.7 million, an increase of 37.8 million (25.4%).
A large part of these increases can be explained by the measures implemented by the Government of the Balearic Islands to ensure the recruitment and loyalty of public employees in these areas, thus guaranteeing the provision of quality public services for citizens. These measures include the reactivation of the professional career in the health sector, the recruitment of 770 teachers and 74 psychologists in educational centres, and the implementation of bonuses that are difficult and very difficult to cover in order to cover the maximum number of posts on all the islands.
Another substantial increase is in the water cycle investment fund, which will increase from 145.1 million in 2024 to 160.2 million in 2025. A figure to which the funds from the Sustainable Tourism Tax will have to be added after approval of the distribution in the Commission for the Promotion of Sustainable Tourism.
On the other hand, the insularity factor of the Special Regime of the Balearic Islands represents 127.8 million euros, which is divided as follows: 59.18 million for the Regional Ministry of Housing, Territory and Mobility; 28.9 million for the Regional Ministry of Health; 14.76 million for the Regional Ministry of Education and Universities; 8.05 million for the Regional Ministry of Economy, Finance and Innovation; 7.45 million for the Regional Ministry of Agriculture, Fisheries and the Natural Environment; 5 million for the Regional Ministry of the Sea and the Water Cycle; 2.8 million for the Regional Ministry of Families and Social Affairs; and 1.69 million for the Regional Ministry of the Presidency and Public Administrations.
For their part, the funding for the island councils, determined by Law 3/2014, stands at 546.7 million euros.
If we look at the distribution by islands, Mallorca will receive 387.2 million, Menorca 70.8 million, Eivissa 77.4 million and Formentera 11.3 million. It is worth remembering that, apart from these transfers, the island councils will receive more funding thanks to measures such as, for example, the start of the advance payments of the road agreements to improve road safety.
Deficit and public debt
The non-financial budget foresees, for the second consecutive year, a scenario for 2025 of zero deficit, i.e. a balanced budget. In addition, next year it is estimated that public debt will be reduced by 20.74 million euros (8,406.9 million euros in total), compared to the forecast for the end of 2024 (8,428 million euros). Looking at the volume of debt over the gross domestic product of the Balearic Islands (GDP), in 2025 it will stand at 20%, 0.8% less than the 2024 closing estimate. This would be the lowest figure since 2012 when it stood at 23.5%.
Tax reform
It should be recalled that the increase in non-financial expenditure, the forecast of a balanced budget and the reduction in debt – in absolute and relative terms – have been achieved with the tax reform fully implemented, both in terms of reductions in inheritance and gift tax, in the tax on capital transfers and documented legal acts, in the reductions in the regional section of personal income tax and in the deductions improved or created to increase citizens’ savings and disposable income.