Saturday, March 2, 2024

Balearic financing – what the islands pay to different areas

Underneath the regional financing system for 2024, the Balearic contribution to solidarity funds for different areas is 1,226 million euros, up from 1,040 million in 2023. To stability this (up to some extent), there may be the so-called convergence fund. When fee of this to the Balearics is taken into consideration, the contribution is 276 million euros.

There are sometimes not more than three areas that are internet contributors to the system. One is the Balearics. Madrid is one other. Catalonia is the third however hasn’t at all times been.

The present Balearic authorities agrees with the precept of solidarity funding however like its predecessor desires a assessment of the system. The formulation expired in 2014 however has continued to be utilized ever since. The Spanish authorities is being urged to open a debate on reform of the system as soon as and for all.

For the Partido Well-liked administration, and it was a lot the identical when Francina Armengol was president, a key issue to be taken into consideration is inhabitants. This has elevated greater than different areas. It’s due to this fact argued that present preparations are inadequate in assembly demand for important providers.

The Prohens authorities desires compensation for insularity to be maintained and its weight to extend below a brand new financing system. A 3rd consideration is the precept of ordinality. Because of this if the Balearics rank second by way of essentially the most per capita tax income for the Spanish authorities, the islands shouldn’t then rank ninth or tenth by way of what’s obtained from the Spanish authorities.

The solidarity and convergence funds are solely a part of the general financing system. The majority of what the Balearics obtain from the Spanish authorities comes from revenue tax and IVA (VAT). Spain’s finance minister, María Jesús Montero, has in actual fact indicated that the Balearics will likely be receiving file financing – 3,981 million euros, up 400 million on 2023.

The quantities for revenue tax and IVA are very comparable – 1,777 million euros and 1,798 million euros respectively.

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