Public finances are better off by more than £20m - thanks to higher then expected tax receipts and lower than forecast spending on welfare benefits.

The figures are released in the government’s latest detailed annual accounts - the so-called Light Blue Book - to be laid before next week’s Tynwald sitting.

Treasury Minister Alfred Cannan said the accounts gave cause for optimism but added: ’We must not be complacent, particularly given international events.’

He said the healthy tax receipts were a reflection of the ’undoubtedly strong business performance’ in key sectors notably ICT and e-gaming - and the extra income had allowed for more funding for the health service without drawing further on reserves.

But Mr Cannan added that Treasury must have an ’eye for the longer term’ and prepare for the significant cash-flow pressure that will hit in 2022-23 when the public sector pensions reserve is due to run out.

Government achieved a surplus in the last financial year of £23.1m versus a budgeted £2.9m.

Income was significantly higher than expected - a total of £1,036m which was £28.1m better than budget and £29.3m better than last year.

A total of £233m was collected in Income Tax, £22m better than budget and £16m up on last year.

Company tax receipts were down but resident tax was almost 20% higher.

National Insurance income was £13.7m better than budget.

The Department of Health and Social Care received a supplementary vote of £9.5m which took the expenditure budget to £1.014bn.

But total expenditure was £1.7m lower than the revised budget, mainly due to reduced benefits costs.

Spending on NI funded benefits was lower than budget by £4.7m mainly thanks to retirement pensions being £6.3m less.ï?·

Non-contributory benefits were £6.3m better than budget largely due to low unemployment levels and consequent reduced spending on job-seekers allowance.

Employee costs including agency staff were £364.1m, £0.5m more than budgeted and £7.7m higher than last year.

This is in part due to a 2% increase in most pay awards.

At the end of March 2018 the market value of the external reserves including cash was £1.9bn - almost £20m higher than at April 2017.

That is in spite of the drawdown for pensions and a poor final quarter for the markets which have subsequently recovered.

Internal funds closed at £5.6m higher than their opening position following transfers in of £12.7m and draw-downs which were lower than budgeted.

Capital spending for the year was low at just £41.5m versus an original budget of £88.4m. Larger schemes which were delayed included the Douglas Promenades redevelopment, the new Liverpool landing stage, airport X-ray machines upgrade and housing schemes.

During the year £95m of historic MUA loan charges were written off following Tynwald approval.