Govt has £9m ‘left over’

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A FORECAST government revenue budget surplus of just £1,000 for 2010/11 was turned into a healthy end of year balance of £9.6 million.

Government accounts for the year ending March 31 this year will be laid before this month’s Tynwald sitting.

They show there was a revenue surplus for the year of £9.6 million, compared with a surplus of £1,000 that had been estimated at the 2010 budget. This turn-around was the result of a better than expected VAT receipts and the fact that government expenditure was £6.9 million less than anticipated.

Treasury Minister Eddie Teare said: ‘Departments were put on notice to save money where they can and this is more so than ever this year.’

The accounts also show the government has fixed assets now valued at £3 billion in terms of land, buildings and infrastructure.

There is £1.8 billion liability relating to the government staff pension scheme.

The accounts also show a £4 million provision in connection with the Depositors’ Compensation Scheme.

Following the collapse of the island’s Kaupthing Singer and Friedlander bank in October 2008, Tynwald approved funding of some £240 million to ensure speedy compensation payouts to depositors.

The liquidators now forecast a final return of between 93p and 98p in the £1 and the final loss to government is now expected to be no more than £4 million.

Mr Teare said his team was now starting work on next year’s budget.

This will be produced against a backdrop of massively reduced VAT receipts following the UK’s second forced revision of the Customs revenue sharing arrangements in as many years.

But Mr Teare said the fact that the UK had guaranteed the VAT figures the island would receive for the next two years at last provided vital certainties in the process of drawing up the budget.

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