Balearic government plans budget cutbacks

PALMA
THE Balearic government will not be cutting public spending on essential services next year, said spokesperson Joana Barcelo yesterday, but it will be putting non-essential projects on a back burner..

Speaking after a full government meeting yesterday, Barcelo confirmed Balearic President's claim that no tax increases would be made next year to attempt to make up the government's 500 million euro shortfall in taxation from business and industry. Her remark came in response to an earlier suggestion by the left-wing Bloc coalition, part of the ruling Socialist government, that it had not ruled out tax hikes.

However, she did not want to reveal how much the budget cuts for next year would be but said that the government would maximise its borrowing potential to ensure that basic services were covered.