The latest Central Government Accounts have revealed that Income Tax brought in an ‘unexpected’ £21.3million for government.
Government said: “Income Tax brought in £21.3m more than had been expected at the start of the year due to factors such as higher interest rates benefiting savers and the real growth in earnings.”
The Central Government Summary Management Accounts covering the full financial year for 2024 – 25 revealed that due to the increase of income tax, the Treasury had decided to not draw on investment income from the General Reserve.
It has instead opted to reinvest those funds.
Accounts
The end of year accounts show that all government departments came in on budget, apart from the Department of Health and Social Care.
As we are aware, the DHSC require an additional £15.3 million supplementary.
The overspend is related to the cost of the mandate to Manx Care and covers additional expenditure on services arising during the year above the operational budget allocation.
‘Transparency’
Treasury Minister Dr Alex Allinson MHK said: “‘The publication of the full-year Summary Management Accounts is designed to provide transparency around how the Isle of Man Government has performed against the budget over the previous financial year.
“It is positive that Income Tax receipts are higher than expected and we continue to monitor this area to understand whether the increase will be restricted to this year or will be repeated in the future.
“These accounts demonstrate that while considerable challenges remain around funding the cost of healthcare – a position that’s not unique to the Isle of Man – Government has achieved a stronger level of control over our expenditure, and I’m pleased to report that greater monitoring and collaboration across the organisation has succeeded in ensuring all other departments are operating within their budgets.”
The Central Government Summary Management Accounts, including both the full financial year and quarterly updates, are available here.
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