Central government’s operating account ended the last financial year £40.8m ahead of budget, latest accounts show.

This improved financial position was driven largely by better than expected income tax receipts.

The management accounts for the 12 months to the end of March include all government departments, Manx Care and other revenue funded statutory boards and offices.

But they exclude Manx Utilities, Isle of Man Post Office and Manx National Heritage along with all other government-owned companies.

The accounts show overall government net expenditure having a £40.8m positive variance to budget for the full year, after fund claims.

Government income was £50m ahead of budget while Treasury income, excluding National Insurance, is £39.9m ahead of budget, thanks to higher income tax receipts.

Overall income was £20.8m higher than the previous year with income tax £34.7m higher than budget but Customs income £57.1m lower - as a result of the previous year’s adjustment to the revenue sharing provision.

The majority of departments and bodies ended the year either broadly in line with their budget or with a favourable variance, with the Department of Education, Sport and Culture coming in at £1.9m under budget.

And the published accounts attribute the overall improved financial position on paper in part to the approval of that supplementary vote.

Employee costs and other operating costs were higher than budget, largely due to the 3% Public Services Commission pay award for 2025-26.

However, a number of departments used internal fund claims to supplement revenue spending, enabling overall budget targets to be met.

The Central Government Summary Management Accounts, including both the full financial year and quarterly updates, are available to view and download at gov.im/categories/tax-vat-and-your-money/government-accounts/