Income from the financing system will drop by about 209 million euros in 2022, so Minister Rosario Sánchez will have to look elsewhere for money to balance the books.
According to the Government’s financial data, the Balearic Islands stumped up 308.8 million euros this year compared to 489.4 million euros in 2020 and 523 million euros in 2019.
The System
The financial system in the Autonomous Communities is designed so that Communities with more economic activity and higher tax collection are in solidarity with other territories with less economic impulse and the Government is fine with that, as long as solidarity doesn't diminish economic possibilities.
The Government stresses that the system is unfair at the moment because the Balearic Islands have the 2nd highest income capacity per capita after Madrid, but are 9th when it comes to receiving money, which implies that each Balearic Island receives 455 euros less than they would via another system.
The Balearic President, Francina Armengol, has called for the financing system to be reformed in order to reduce the difference between being 2nd in terms of collection and 9th in obtaining income.
She is proposing that the ordinality principle be respected, i.e., that there less difference between what is collected and what is charged when the money is distributed, but the Balearic proposal is in limbo, because Prime Minister, Pedro Sánchez hasn’t even opened a debate on financial reforms in the Autonomous Communities.
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