The Government approves a spending ceiling of 6.924 billion euros, 5.5% more than last year.
Costa warns Vox that if it votes against it, it will have to "explain it to the citizens."
PalmThe Governing Council approved this Friday the non-financial spending ceiling for the Balearic Islands for 2026, which has been set at €6,024.4 million. This figure represents an increase of €361.5 million (5.5%) compared to the 2025 financial statements. First Vice President and Minister of Economy and Finance, Antoni Costa, argued that it will strengthen public services and advance the transformation of the economic model. Aware that the PP currently does not have a majority in Parliament, he left it up to Vox to decide whether or not to support the initiative. "It will be the responsibility of the deputies and political groups who vote against it to explain to the citizens that they do not want to strengthen the fundamental public services of this region," he reflected.
In this regard, Costa warned that he will negotiate the spending ceiling with all parties, but will not accept negotiations that include other issues. "The Government will not change cards, nor will it mix eggs with snails," he said, as reported by Efe. In this regard, he also appealed to the responsibility of the left wing of the chamber. The Government forecasts financial revenue of €6.2063 billion, to which €718.1 million in state accounting adjustments must be added.
Costa emphasized that these figures do not represent a "miracle," but rather the growing economic activity of the Balearic Islands, with the Government's commitment to lower taxes for citizens. The Balearic economy grew by 4.1% in 2024, with the forecast for this year and 2026 being an increase of 3% and 2.7%, respectively. Tax revenue will increase to €6.06 billion by 2026, compared to the €5.938 billion projected for 2025. Income from personal income tax (IRPF) will reach €2.600 billion, up 1.5% from the previous year, while income from personal income tax (PIT) will reach €3 million, a 5.7% decrease. The islands' net contribution to the regional financing system has decreased by €217.5 million compared to the previous year, reaching a negative balance of €408.5 million. Furthermore, revenue from the property transfer tax (an increase of 10.1%) and €83.9 million from inheritance and gift tax (a 28.3% increase) are expected to be collected. Likewise, €148.6 million will be collected from the Sustainable Tourism Tax (ITS).
Current and capital transfers to the Autonomous Community, excluded from the regional financing system, will grow by 19.5% to €452.9 million, of which €256.2 million will come from sectoral conferences and other state contributions; €152.3 million from the island factor; and €44.4 million from European ERDF and ESF funds.
