Palma City Council expects to spend at least 12.1 million euros on dealing with coronavirus pandemic issues in 2021.
"This figure is a forecast and it is very likely that spending will have to be increased,” warned a Council Spokesperson.
Last year, Covid management cost 44.65 million euros, because the Council was forced to adapt to the pandemic as it unfolded, which meant spending more money.
The first item in the Covid budget is the loss of income for occupation of public roads; the total this year is forecast to be 1,025,424.73 this year compared to 1.95 million the year before.
“This item contains two sections; the fees that won’t be charged to hoteliers for occupation of public roads in the first semester which amount to 900,000 euros and the fees lost because ORA parking spaces have been converted into terraces will amount to 125,424.73 euros," claims Finance Councillor, Adrián García.
Direct aid for families is expected to top 5.55 million euros this year.
“In a normal year, around 4 million people receive social welfare aid, but we’re starting this year with a budget of 5.5 million euros and that’s likely to increase because of the consequences of the pandemic,” says Councillor García.
1.9 million euros worth of direct aid has been earmarked for companies and self-employed workers in 2021.
"PalmaActiva's direct aid for companies and the self-employed was nearly 2 million euros last year and it’s likely to be higher this year," he added.
The budget also contains two new items:
Bonds that are to be distributed amongst consumers to boost local trade will amount to 200,000 euros and job promotion will cost around 300,000 euros.
Medical equipment and PPE is expected to run to 1.17 million euros, which includes medical supplies and protective equipment for EMT and funeral homes. 2.4 million euros will be allocated to other measures, including 300,000 euros for Tourism promotion and 50,000 for the catalogue of emblematic establishments.
“The money spent to manage Covid issues came from an emergency contingency fund included in the budget, savings and surplus items not executed,” said Council sources. "A loan was also requested for EMT, Smap and Funeraria.”