The Balearic Islands increased spending by 14.5% in 2024, when the maximum allowed was 2.6%.

PalmThe Independent Authority for Fiscal Responsibility (AIReF) has expressed its disagreement with the government's spending increase in 2024, which was 14.5%, while the Ministry of Finance's spending rule set a maximum of 2.6% last year—a deviation of 11.9 percentage points. This is the fourth time the islands have failed to meet this budget stability target since the current fiscal rules were implemented—the previous breaches were in 2014, 2015, and 2018. Furthermore, AIRef points out the impact that the government's tax cuts have had on the spending rule. In fact, the government has reduced taxes worth more than €500 million since the beginning of its term (according to AIReF data, €51 million were lost in 2024 from wealth tax alone), according to Prime Minister Marga Prohens.

Sources from Antoni Costa's Ministry of Economy, Finance, and Innovation point out that "virtually all the autonomous communities breached the spending rule" in 2024 and criticize the fact that this rule was designed at the state level, "not at the level of the autonomous communities." "There are communities that are growing in population and need for services, like the Balearic Islands. We have to understand that there is a greater need for growth than the Spanish standard," they comment. They also criticize the fact that the Spanish spending rule does not distinguish between spending done "with European funds."

On the other hand, the Executive justifies this deviation from the Islands' spending rule because it must comply with rulings, "such as that of Muleta and that of the civil servants," which "have cost millions of euros." "Applying the spending rule, the requirement to return back pay to civil servants would be difficult to achieve," he points out. The Ministry of Finance also emphasizes that, had the spending rule been followed, "the surplus would have been €500 million out of a non-financial budget of €6.5 billion," figures that "would compromise investments and the execution of the Balearic Islands' needs."

The AIReF has also predicted the macroeconomic scenario for the autonomous communities until 2029. The outlook for the Balearic Islands is a progressive reduction in island GDP growth, which will fall below the average in 2028 (the islands' GDP will be 1.5% and the rest - 1.5%). The organization estimates that GDP will grow 2.8% this year in the islands, one percentage point less than last year. In 2026, the increase will be 1.9%, and 1.7% in 2027.