The government’s rebalancing plan is working well, Treasury Minister Eddie Teare told Tynwald today during his Budget speech.
The rebalancing plan remains a combination of reductions in capital expenditure, reductions in revenue spending, adjustments to taxation or charges, and where needed, the use of reserves.
Mr Teare said that the rebalancing was proceeding according to plan, with a deficit of £11m anticipated for 2014/15.
The spending reduction programme continued to deliver results, and significant additional savings would be achieved in 2014-15 onwards as a result of the further development of shared services (eg catering, fleet management, cleaning etc.) combined with a restructuring of government departments.
The Minister also re-stated some of the issues still needing to be addressed once the revenue budget has been rebalanced in 2015/16. These included increasing transfers to the Capital Fund, and reducing reliance on Internal Funds. As such the Minister noted that more savings would be required in the years after 2015/16 to deal with these issues.