Balearic budget up by 6.6pc, to 2´894m euros

THE Balearic Cabinet yesterday gave its approval to its budget for 2007 for a total of 2'894.3 million euros, 71.4 percent of which will be used for social welfare activities. “This is the most socially aware budget in the history of the Balearic Islands”, said Luis Ramis de Ayreflor, Balearic Minister for Economy, Tax and Innovation, after the Cabinet meeting. It is also 6.6 per cent higher than this year's budget. He explained that this increase was determined by the sum of the estimated rise in the Consumer Price Index and the Gross Domestic Product during this year and added that the drop of 4.6 percent in the investments planned for 2007 was due to the completion of works carried out by the Government so far during their period of office. Ramis de Ayreflor said that social welfare expenditure will take up 72.9 percent of the budget (2'110.8 million) taking into account the transfers to the Island Councils to finance the social action powers which have been transferred to them.
PARLIAMENT
The Minister, who will make a more detailed presentation on Thursday when the budget is brought before the Balearic Parliament, highlighted some of the main points, such as the 10.5 million euros which will be used for the Dependency Law, a sum which will be matched by the Spanish Government.
He also talked about the grant of 45.5 million for research, technological development and innovation, which represents an increase of 30.4 percent compared to this year's budget.
With regard to the global growth of the budget, the Minister said that when the Partido Popular came to power in 2003 the budget was 1'859 million euros, and that the growth since then had been 54 percent.
The budget for personnel is 559.7 million euros (19.3 percent of the total), which is some 6.1 percent above the 2006 budget because of the rise of 2 percent in payments, the rise of 1 percent in salaries and the increase in education staff. Current costs, which have a budget of 73.5 million euros (2.5 percent of the total), have risen by 9.85 percent, and the financial costs, which have a budget of 70.6 million euros (2.4 percent of the total), have grown by 11.1 percent, which the Minister put down to the increase in interest and debts. The current transfers will go up to 1'576.1 million euros (54.4 percent of the budget), some 11.4 percent more than this year, and will mainly be given to the Ministries of Health, Public Works and the President's Office.
CAPITAL
The investments and transfers of capital will have funds of 572.1 million euros (19.7 percent of the total) and Ramis de Ayreflor insisted that the fall of 4.6 percent in comparison with 2006 was due to the completion of some of the infrastructure projects, especially roads. The consolidated debts which the Balearic Government is expecting to be responsable for next year amount to 123 million euros, which is a reduction of 50.8 percent in comparison with 2006 and shows a trend which could wipe out the debt by 2008.