Vicenç Thomàs, President of the Parliament & Rosario Sánchez, Finance Minister. | Pere Bota

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The Balearic Islands will shell out 449.91 million euros in solidarity contributions next year, despite the fact that we're immersed in the biggest economic crisis in history with a 28% drop in GDP, according to Government calculations.

The Ministry of Finance published the figures for 2021 for all Autonomous communities on Friday, which show that the Balearic Islands will receive almost the same financing as this year, but the downside is that funding and solidarity contributions are maintained.

Data per capita

The Balearic Islands and Madrid are the only communities that will participate in the solidarity funds. The Balearic Islands will contribute 449.91 million, which is roughly 390 euros per inhabitant and Madrid will contribute 4,882.38 million euros which is roughly 733 euros per inhabitant.

The Balearic Islands will receive a total of 2,899.69 million euros, which is 35.6 million euros more than 2020 and 2,092.26 million euros of that money corresponds to deliveries on account. An extra 807.43 million euros will come from the settlement in 2019.

The financial system operates with a two-year delay in community finances. The Government basically estimates how much it will collect from each community in personal income tax, VAT, taxes on alcohol, tobacco, beer, hydrocarbons, electricity and the so-called excise taxes.

That is the money it gives to the Autonomous Communities, the so-called deliveries on account, but after two years the actual amount collected from each territory is recalculated. It is normal for the Government to estimate downwards which is why money that was not previously calculated, arrives 2 years later, so 807.43 million euros in compensation will arrive in 2021.

The Balearic Government has been calling for the financing system to be changed for years.