Government’s success in supporting the economy and reducing its own running costs has led to a lower than expected deficit at the end of the 2013/14 financial year, Treasury Minister Eddie Teare MHK announced today (Friday June 13, 2014).
But with fiscal challenges still to be faced, Mr Teare warned that the encouraging outcome was ‘no excuse to relax’ in terms of maintaining budgetary discipline.
At £17 million the net revenue deficit at the year end was £14 million lower than estimated. Income was higher than forecast, boosted by additional income tax receipts of £5 million, while Departmental under-spending brought expenditure in below estimate.
The Treasury Minister commented:
‘The outturn for the last financial year is positive news, showing that Government is succeeding in delivering significant savings while sustaining the economy, which is forecast to grow at a rate of three to four per cent.
‘We have kept public sector pay below inflation, total staff numbers have been reduced by more than 700 over the past four years, and Departments are working hard on initiatives to cut costs.
‘Government is well on course to rebalance the budget in the 2015/16 financial year, but that does not mean we are out of the woods. Government’s internal reserves need to be rebuilt, cost pressures will continue, and most importantly we still do not know exactly what the Island’s share of VAT revenue will be in the future.’
Mr Teare concluded:
‘This latest update on Government’s financial position is a very welcome confirmation that we are delivering on our national priorities of rebalancing public finances, growing the economy and protecting the vulnerable.
‘But knowing that challenges still lie ahead it is certainly no excuse to relax from the task of maintaining financial discipline, and indeed it would be politically irresponsible to do so.’
Government’s accounts for the year ended March 31, 2014 are due to be published next Tuesday June 17, 2014.
