Treasury Minister Dr Alex Allinson says the is on course to be £16m over budget this year.
This includes an expected £15.5m overspend at Manx Care.
Part of this includes the government seeing a lower than expected income, with the minister saying he will publish quarter one tax figures soon.
As well as an increase in demands on the budget of the health service, Dr Allinson said a higher than expected education roll has seen extra costs for the DESC.
The Treasury Minister said higher interest rates are also still causing issues for government and local authority borrowing and spending.
Dr Allinson said that department have put in place plans to return to their balance plans as he warned of future issues that could arise in the coming months.
He said: “The key focus for the year is financial discipline to ensure we keep to the medium term financial plan and to protect our reserves.”
Not All Bad
Dr Allinson did have some good news, saying that the island’s economy is looking healthier than a year ago, citing the current 2% inflation rate and low unemployment figures.
Despite this, he said the “baked in” impact of the inflation of recent years is continuing to put strain on government and households.
Focusing on employment, Dr ALlinson said the island has a relatively flat level of 300 jobseekers on the island, while there are over 900 vacancies across the economy.
One area that has gone down in recent years is the property market, with 1,170 property transactions over the last 12 months, slightly down on the previous year.
8 Comments