A total of 62 amendments (24 to the text and 38 financial) from all parliamentary groups were incorporated during the legislative process.

The Plenary of the Parliament of the Balearic Islands has officially approved the 2025 General Budget Bill for the Autonomous Community. After three days of final debate sessions, the Parliament has given the green light to the public accounts. “These are the second budgets of change, focused on ensuring and improving the provision of essential public services, while placing housing and the water cycle at the centre,” stated the Vice President and Minister of Economy, Finance, and Innovation, Antoni Costa. “We are demonstrating that this is a stable government, capable of reaching agreements with parliamentary forces, which is exactly what the citizens of the Balearic Islands are asking for,” he added.

A total of 62 amendments were incorporated during the process (24 to the legislative text and 38 numerical amendments): 23 in the committee stage, 8 during the commission phase, and 31 in the final plenary session.

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The Balearic Islands Parliament Approves the 2025 Budget Bill

The total budget amounts to €7.469 billion, representing an increase of €148.4 million (+2%). Of this, €6.563 billion (+€197.4 million, +3.1%) is non-financial expenditure, while €906.3 million (-€48.9 million, -5.1%) corresponds to financial expenditure. This budget increase coincides with the impact of the government’s fiscal reform, which totals over €530 million; public debt has been reduced by €500 million over the past two years, and by the end of 2025, the debt-to-GDP ratio is projected to be 17.7%—levels not seen since 2010. The Balearic economy continues its upward trend, with five consecutive quarters of growth above 3%, and an annual growth rate of 3.4% in the last quarter. The region remains within a balanced budget framework, maintaining zero deficit.

Social spending plays a central role in the budget, accounting for 59.4% of the total—nearly 3 out of every 5 euros—with €4.438 billion allocated. This represents an increase of €445.7 million compared to 2023 (+11.2%) and €216.3 million compared to 2024 (+5.1%). By sector, Health receives €2.445 billion (+3.3%), Education €1.416 billion (+4.7%), Social Services €389.6 million (+10.5%), and Housing €186.7 million (+25.4%)—marking the first time the Balearic Housing Institute (IBAVI) exceeds €100 million in budget.

Also noteworthy is the increase in Chapter 1 personnel expenditure, reaching €2.351 billion, a rise of €240 million (+11.4%). This is largely due to the reversal of the 2.9% salary cuts from 2020 and 2021, the unfreezing of the healthcare career pathway, the hiring of over 700 new teachers, and a legislative agreement with trade unions that, among other things, standardises the residency allowance—a long-standing demand.

The budget for government departments, including the Insularity Factor, grows by €185.5 million (+3.6%), reaching €5.397 billion. The only decrease is in the Ministry of Tourism, Culture and Sports (€95.8 million, down €99.6 million) due to a reduction in EU Recovery and Resilience Mechanism funds.

Insularity Factor and Sustainable Tourism Tax (ITS)

Two key funding sources include the Insularity Factor and the Sustainable Tourism Tax (ITS).

• The Insularity Factor totals €127.8 million, distributed as follows:
  • €59.18 to the Ministry of Housing, Territory and Mobility (including over €40M for road agreements with island councils)
  • €28.9M to the Ministry of Health
  • €14.76 to the Ministry of Education and Universities
  • €8.05M to the Ministry of Economy, Finance and Innovation
  • €7.45M to the Ministry of Agriculture, Fisheries and Natural Environment
  • €5M to the Ministry of the Sea and the Water Cycle
  • €2.8M to the Ministry of Families and Social Affairs
  • €1.69M to the Ministry of Presidency and Public Administration
• Regarding the ITS, allocations for 2024–2028 amount to €236.6 million, with three out of four euros devoted to environmental policies:
  • €141.8 to the Ministry of the Sea and the Water Cycle
  • €37.6M to Agriculture, Fisheries and Natural Environment
  • €36.8M to Tourism, Culture and Sports
  • €11.8M to Enterprise, Employment and Energy
  • €6M to Housing, Territory and Mobility
  • €1.5M to Education and Universities
  • €1M to Economy, Finance and Innovation

Additional Highlights

Two final aspects worth noting:

• Funding for island councils (consells insulars) reaches €546.7 million:
  • €387.2 for Mallorca
  • €70.8M for Menorca
  • €77.4M for Ibiza
  • €11.3M for Formentera
• A record investment in the water cycle, totalling €200 million in 2025 alone. This figure includes five funding streams:
  • The Ministry’s resources
  • dedicated investment funds
  • the ITS
  • The Insularity Factor
  • EU funds for sensor-based smart water management.