Treasury Minister Dr Alex Allinson faced questions in Keys this week about the island’s structural deficit.
For 2024/25 this is now forecast at £86 million – more than double the £36 million initially projected.
Kate Lord-Brennan (Glenfaba & Peel) challenged: “Post COVID, there seems to be a trend that is looks to be too comfortable on budgeting for a structural deficit.
“How much confidence can we have that Treasury have actually started planning in a prudent way?”
Dr Allinson responded: “The deficit position has worsened, partly, as she said, sort of following COVID but also due to the massive changes we saw following the Russian invasion of Ukraine.”
The Treasury’s 2% pay and 1% non-pay caps also faced criticism for their lack of realism.
Lawrie Hooper said: “We all know, however, that the pay increase for the year is likely to be more than those percentages.”
While Julie Edge wsaid that the minister “needs to hand his keys in himself” if his department is unable to bring the figure down.
Dr Allinson maintained Treasury was “looking for those efficiency savings” while protecting services.
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