This follows a commitment by the Treasury Minister to provide regular updates outlining the state of Government finances and the wider Island economy.
Treasury revenue and receipts are in line with this year’s Budget and forecast to be £0.8m ahead of the projected full-year amount.
Departments have included a prudent provision for potential pay awards but this continues to be a major risk with above-inflation claims being made.
The Department of Education, Sport and Culture forecasts an overspend caused by income being below expectation and increased teacher pay awards.
The Department for Enterprise is forecasting an overspend due to a slowdown in the housing market compared with last year, and a subsequent reduction of income, alongside increased costs within its Motorsport division, which supports the TT and MGP.
The Department of Infrastructure is having to contend with increased costs for the provision of social housing and the bus service.
The Department of Health and Social Care was already forecasting an overspend by June 2024 which has been primarily driven by increased costs in Manx Care, in areas such as tertiary contract activity and additional drugs costs. Without corrective action this overspend was due to increase by the end of the financial year. A range of cost improvement savings have already been agreed by the Manx Care board to reduce the projected year-end overspend while continuing to maintain critical services.
Treasury Minister Dr Alex Allinson MHK commented:
‘The first quarter accounts show financial pressures on all departments, especially related to staff pay and inflationary increases in supplies and services. Treasury has instituted monthly scrutiny panels to challenge departmental forecasts while analysing costs and any projected overspends. Across Government, officers have been working on a range of efficiency measures and cost improvement programmes.
‘As the Chief Minister stated at the recent successful Government Conference, it is essential that we reinforce financial discipline and adhere to the financial plan set out by this administration to provide crucial front line services whilst reducing our dependence on reserves and proving value for money to the Manx people.’
As previously confirmed by the Treasury Minister, the Central Government Summary Management Accounts for each quarter will be made publicly available once they have been considered by the Council of Ministers.
