Balearic spending risks breaking limits in 2026 and 2027
Mallorca and the rest of the Balearic Islands face a spending-rule breach: public spending covered by Spain’s national limit is forecast to grow 5.6% in 2026, against an allowed 3.5%. Spain’s Independent Authority for Fiscal Responsibility (AIReF) makes the warning in a report published on Wednesday, 4 November 2026. It expects spending to rise 6.1% in 2027, above that year’s 4% limit.
A surplus, but spending still over the limit
AIReF forecasts a budget deficit of 0.1% of gross domestic product in 2026 and a surplus of 0.1% in 2027. The Balearic government expects to meet the spending rule in both years and forecasts a larger surplus for 2027.
The authority expects staff costs and day-to-day running costs to rise, particularly in health centres. The government’s budget plans put 2027 spending below AIReF’s estimate.
Warning stretches to 2029
AIReF also sees a risk of breaking the rule in 2028 and 2029. It forecasts spending growth of 5.7% and 4.1% respectively, above the current limits of 3.8% and 3.6%.
The authority says savings made or planned do not appear sufficient to hold down spending growth. It urges the Balearic government to avoid further permanent spending increases unless they have lasting funding.
Source: Europa Press / Mallorca.com