Balearic government tax revenues soar

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The Balearic government raised 500 million euros more than expected in taxes and fees in 2021.

The provisional budget was 4.215 million but the government actually collected 4.713 million euros, i.e. 498 million more.

The government also managed to save 337 million euros, despite spending skyrocketing due to the pandemic.

The surplus will be used to repay debts due to banks and central government, but the PP echoed the demands of other politicians for a cut in personal income tax; the abolition of tax on gifts and inheritances and the reduction of property transfer taxes.

No tax reduction

But those requests clearly fell on deaf ears. The Ministry of Finance claims that the only reason there is a surplus of 500 million euros is that the the forecasts were cautious, given the economic uncertainty due to the pandemic and insists that taxes are used to pay for social policies that have been implemented during Covid.

The ministry also states that 2021 recorded the highest public spending in the history of the Community, with more than 5.5 billion euros devoted to public policies, i.e. 930 million more than the previous year and a 60% increase compared to 2015.

In the two years marred by the pandemic, expenditure amounted to around 10.2 billion euros.

Asked about the surplus and how the government managed to save 337 million euros at such a difficult time, the ministry claimed that most of the autonomous communities ended up with a positive balance.

The extra

The Conselleria of Hisenda claims that the fact that the revenues were higher than the calculations is until tax collection and transfers from central government and pointed out that 330 million euros of Covid funds have arrived instead of 295 million.

The government insists the money was used to improving social services and health; that more teaching staff have been hired and that grants have been given to entrepreneurs on the islands.

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