PalmaActiva cuts its budget by 16%: fewer employment programs and less support for local commerce.

PalmThe PalmaActiva Governing Council met to discuss the draft budget for the 2026 financial year, which totals €8,858,329. This represents a 16% reduction compared to this year's accounts (€10.2 million).

Cort assures that these provisional accounts "maintain the balance between income and expenses" of the Palma City Council's Local Development Agency. Among its main items, the €1,478,155 allocated to projects and activities related to employment, training, and local economic development stand out, representing 16.69% of the overall budget.

However, the Socialist group in Palma believes that the cuts are mainly in active employment programs and in personnel expenses—since vacant positions have not been budgeted—and that, in addition, support for local commerce is being reduced.

The PSIB spokesperson in Palma, Xisco Ducrós, highlighted the cuts in active employment programs, such as the reduction in the Impulsa't Palma program and in the mixed training and employment projects financed by the Government of the Balearic Islands. "The contribution is reduced by 37%, one million euros less in active policies," he asserted.

Regarding the fact that vacant positions are not budgeted, Ducrós points out that this represents a 17% decrease in the budget, so PalmaActiva "will not have sufficient personnel to develop training, employment, and support programs for the local economy."

Ducrós also criticized the 33% reduction in subsidies for local commerce in Palma's neighborhoods. "This fact demonstrates the lack of commitment and support from Mayor Martínez for the local economy," he lamented.

The Agency's Priorities

For its part, the City Council emphasizes that among the Agency's priorities is also support for small and medium-sized businesses and the self-employed. In this regard, the allocation for subsidies for modernization and improving competitiveness remains at €250,000, of which €200,000 is allocated to specific lines for innovation in commerce, and the remaining €50,000 is earmarked to support the city's self-employed.

For Cort, another relevant aspect is the allocation of €295,559 for agreements and subsidies, such as those aimed at Palma's emblematic establishments or commercial Christmas window displays, as well as the various actions carried out by PalmaActiva at zero cost thanks to the work of the entity's human team.

The draft budget passed with the votes of the PP and Vox, while MÁS and Podemos did not attend the meeting, and the PSIB-PSOE arrived after the meeting had ended.