No deficit is projected for 2025, but in the following two years changes to inheritance and wealth taxes are programmed to have an impact.
All citizens benefit because of the elimination of inheritance tax, but this clearly isn't the case with wealth tax. The tax savings are that much greater for those individuals with large fortunes; the beneficiaries are those who have assets worth up to three million euros.
Llorenç Pou of opposition party PSOE stresses that the government must comply with the rules of budgetary stability, so it will have to find a formula to overcome an anticipated imbalance of 230 million euros. He is meanwhile critical of the fact that the government has approved tax cuts for the rich but not for others.
In principle, a regional government cannot have a deficit, this having been a stipulation of the budgetary stability legislation introduced by the Mariano Rajoy Partido Popular government in 2012. The Balearic government will be hopeful that the programmed deficits will be overcome through increased revenue from the annual rounds of regional financing by the Spanish government.
5 comments
To be able to write a comment, you have to be registered and logged in
SaraYep I agree - if it is about doctors and nurses or teachers then great I'll gladly pay for that - but really we all know that these extra costs are probably not coming from extra doctors and nurses, far more likely to be extra spending on consultants, administrators and other expensive people in suits.
Who would have thought, lowering taxes whilst promising everything (and delivering nothing). This lot are economically illiterate and totally useless!
Chris GAbsolutely! More jobsworths! When i first moved to my little town i was looking at all the oranges falling from the trees and the council guy sweeping them up and throwing them away. I asked him about them and he said they are too "marga" to eat so i said they would be great for marmalade. His response was, " yes, but you cannot collect them because they are not yours!" And he continued to sweep them up and throw them away. I like to think there will be a "special" place for mean-spirited people like that when the time comes. The irony of this article is that we are constantly being told how AI is taking over and we will all be without jobs.........clearly not in Mallorca!
Chris GDifficult to opine without knowing the specifics of “personnel”. It could mean more nurses, doctors etc - badly needed.
Why, oh why are they increasing public spending on personnel??? The administration is already unwieldy! Just like any business has to, they need to focus on getting more from what they have rather than increasing the spending on extra personnel.