Tynwald Members will be asked to approve supplementary votes for four Isle of Man Government Departments at next month’s sitting.
The sum is required to cover the following overspends:
- Department of Health and Social Care £30,000,000
- Department of Education, Sport and Culture £8,900,000
- Department of Infrastructure £5,665,000
- Department of Home Affairs £2,200,000
If approved, the supplementary votes will result in each being on budget or producing a small underspend at the end of the financial year on 31 March 2024.
Treasury Minister Dr Alex Allinson MHK will move the motion at the February sitting. He said:
‘The current economic situation has caused exceptional pressure on government departments, particularly around high inflation and pay awards in addition to their own specific issues. Despite remedial action being taken to minimise the impact, sustaining services vital to our community means extra funds will be required to cover expenditure.
‘Treasury has received regular updates throughout the year and will be working closely with the departments to ensure they continue to exercise strong financial management and control.’
He added: ‘While the separate supplementary votes indicate funding must be found from outside the year’s annual Budget allocation, a favourable financial position means Treasury is able to avoid the need to draw further on reserves.
‘Additional income tax revenue of around £48m is expected to be received while expenditure from internal funds is lower by approximately £29m. As a consequence, the amount drawn from reserves is forecast to be much lower than the planned £152.9m, even taking into consideration the supplementary votes being requested by the Departments.’
The four Ministers requesting the supplementary votes will provide an update and context around the financial position of their individual Departments at February’s Tynwald sitting.
