205 amendments have been incorporated (50 to the articles and 155 numerical amendments) from the parliamentary groups during the parliamentary procedure.

The plenary session of the Parliament approves the Budget for 2024

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The plenary session of the Parliament of the Balearic Islands has definitively approved the draft general budget law of the Autonomous Community for 2024. After three days of plenary sessions for the final debate on the accounts, the chamber has today completed the final approval of the regional accounts, which, as highlighted by the Minister of Economy, Finance and Innovation, Antoni Costa, are “the budgets of change and are focused on the main issues and concerns of the citizens of these islands”. “We are keeping our word: lowering taxes and increasing social spending and investment,” added Costa.

With more resources than ever before, to over 7,320.70 million euros, 2.6% more than this year (+187.3 million), the 2024 budgets foresee the highest social spending in history, exceeding 4,000 million euros for the first time, that is, 219.7 million euros more than in the previous year. The Education budget will be 1,353.8 million euros, 94.4 million more than in 2023 (7.5%). As for Health 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%).

Amendments incorporated

Throughout the parliamentary process, 205 amendments have been incorporated from the different parliamentary groups, 50 of them to the articles of the Bill, and 155 numerical amendments.

Investments

For the first time, the investment budget 2024 will exceed 1,000 million 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 facilitate investments of up to 136.07 million euros, of which more than half (50.7%) will go to environmental policies (investments in water and the natural environment, as well as 4 million for Menorca Biosphere Reserve, under the Ministry of the Presidency and Public Administrations). And, in the case of the Department 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 amounts to 103.82 million euros.

“And all this, without forgetting that the scenario we have drawn up for 2024 is that of a balanced budget. And as was seen in the Fiscal and Financial Policy Council, with an increase in unplanned revenue of 18 million euros. We said that we were making cautious estimates, and that was the case,” said Costa.

Tax reform

The draft law provides for a 0.5% reduction in the regional personal income tax bracket for medium 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). In addition, the elimination of Wealth Tax has been approved for those with assets of less than 3 million euros.

“As a result of consensus with the parliamentary groups, we continue to extend numerous deductions, such as for reconciliation, for the purchase of textbooks or for the increase in variable mortgages. And we have also created a new one, of between 800 and 1,400 euros, for birth or adoption”, added Costa.

Departments

All the ministries of the Govern are increasing their budgets. In total, the increase will be 346.3 million euros (+31.6%) compared to 2023, reaching 3,342.3 million euros.

Education and Universities experiences the largest increase, with a budget of 1,353.8 million euros, 94.4 million more than in 2023 (+7.5 %). It includes, among other measures, 51.9 million for free education for 0-3-year-olds, 30.5 million more for payroll and social and labour improvements for teaching staff, and 47.5 million to improve infrastructures and build new centres.

The Regional Ministry of Families and Social Affairs increases the budget for dependency to 176 million (13 million more than in 2023), reserves more than 3 million for the electronic Single Social History and presents a plan to reduce the waiting list for disability assessment.

The budget for the Health area grows by 5.1% to 2,354.4 million euros, which includes a reinforcement of Primary Care with 620.8 million euros (52.1 million more than in 2023), 43.5 million for the recruitment and loyalty of health professionals, and 134.2 million euros for the Infrastructure Plan. In addition, there is a clear commitment to mental health with a 70% increase in the budget to 5.2 million euros.

The Regional Ministry of Tourism, Culture and Sports has increased its budget by 34.7% to 221 million euros, including 25 million euros for the Directorate General of Sports and 2.5 million euros for the Institute of Cultural Industries of the Balearic Islands (ICIB). On the other hand, the Regional Ministry of the Presidency and Public Administrations is set at 116.5 million euros and includes, among other items, 16.5 million for the Local Cooperation Fund and 12 million for the Balearic School of Public Security project.

In the Regional Ministry of Economy, Finance and Innovation, the Fiscal Advisory Council is created to defend the general interest and the interests of the citizens of the Islands, as well as the Balearic Agency for Digitalisation, Cybersecurity and Telecommunications (ABADICTEC). In addition, the budget of the Directorate-General for Innovation has been increased by 60.8%. For its part, the Department of Enterprise, Employment and Energy gets 378 million euros, which includes 150 million for the Directorate General of Circular Economy, Energy Transition and Climate Change or 7.3 million for aid for industrial conversion and modernisation of production.

Likewise, the Regional Ministry of Agriculture, Fisheries and the Environment has a budget of 152.2 million euros, which represents an 18.7% increase compared to 2023. The department headed by Joan Simonet will allocate 90 million to direct support policies for the primary sector, 26 million for forest management, fire prevention and forest health, and 25 million for investments in agricultural and environmental sustainability.

Finally, the Ministry of Housing, Territory and Mobility has increased its budget by 6.2% to 240 million euros, with 89 million euros for the Balearic Housing Institute, 69.2 million for housing programmes, and 59.3 million euros, a 13% increase, for the intercity bus service (TIB).