Island is millions short of balanced budget

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Island is millions short of balanced budget

Post by GD on Thu 02 Dec 2010, 11:20 am

An independent review says it's very likely Guernsey's public finances are in structural deficit.

That means the island needs to raise millions of pounds or make corresponding cuts to balance its books.

Summarising its report, the Guernsey Fiscal Policy Panel said:

"The Panels tentative assessment is that the States is making commendable efforts to meet the targets of the Fiscal Framework. Ambitious expenditure restraint and efficiency gain measures have been proposed and considerable efforts have already been made to make up for the revenue lost by the introduction of zero/10. However more remains to be done and many questions remain about sustainability.

Subject to the considerable uncertainties, the score card looks as follows:

- The budget deficit as a percentage of GDP is well within the limit, even on the pessimistic scenario.

- On-budget expenditure and revenue are well within the historic norm. Including off budget expenditure and social security contributions, total public expenditure and revenue remains within the historic norm provided that the 2011 budget measures are adopted.

- Allocations to fund capital expenditure seem to be significantly below the 3% of GDP norm.

- As it seems very likely that there is a structural deficit of the order of 1% of GDP as well as the cyclical deficit, the current strategy is not compatible with permanent balance.

- It seems likely that the current measures will meet the target of limiting the cumulative deficits to the size of the Contingency Tax Reserve."
(from CTV)

Guess we will expect more tax rises..


......THE BOSS......

"Always be yourself because the people who mind don't matter, and the people who matter don't mind"

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Re: Island is millions short of balanced budget

Post by kingcolemk on Thu 02 Dec 2010, 11:27 am

The words ' subject to considerable uncertainties ' make the whole exercise and it's conclusions totally wortless.

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Re: Island is millions short of balanced budget

Post by kat on Thu 02 Dec 2010, 3:09 pm

makes me wonder why we give them million of pounds to look after
my dear old gran would have sorted it all out for them and have enough money in the rainy day fun to fund a storm
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