The Accounts released at this stage are the detailed management version compiled to the nearest whole pound and which remain subject to Audit by the Public Auditors, the Treasury explained.

After the completion of the Public Audit later this year, a less detailed financial report style version of the Accounts will be released and formally laid before Tynwald, before its October 2008 sittung.

According to the Treasury, the Accounts revealed:

• Treasury income of GBP598mn.
• Net revenue expenditure of GBP543mn.
• Capital expenditure of GBP68mn.
• Revenue surplus of GBP55mn.
• Transfers to various reserves of GBP68mn.

The Accounts continue to show strength in the Government’s finances.

Treasury Income has exceeded estimates for the year, predominantly due to Customs receipts.

The Treasury further revealed that as in 2006-07, Departments’ net expenditure has exceeded the amount shown in the 2007-08 Budget, mainly as a result of public sector employees’ pay awards.

A significant amount (GBP68mn) has again been transferred by Treasury to various Government reserves and funds in order to meet expected requirements in future years, such as in respect of pensions obligations and to provide funding for the new funds announced in the 2008-09 budget.

Treasury Minister Allan Bell also announced on Tuesday that capital spending by Government Departments during the last financial year was "well within" the overall budgets agreed by Tynwald.

At the May sitting of Tynwald, Mr Bell tabled a resolution seeking approval to adjustments in the timing of funds being made available to Departments for Capital schemes.

A similar resolution is submitted to the May sitting of Tynwald each year by Treasury on behalf of the Departments included in the resolution.

In addition to the adjustments to the timing of funds, the 2007-08 resolution also requires approval for an additional amount of GBP400,689 in respect of 9 schemes to be authorised by Tynwald.

These amounts have generally arisen where schemes have proceeded more quickly than anticipated and expenditure has been incurred prior to approval being sought and obtained from Tynwald.

Mr Bell commented:

“The successful delivery of capital schemes can be very challenging. It can be difficult to forecast with accuracy the timing of payments to contractors where schemes span several years."

"It is therefore appropriate to provide flexibility and not hold back schemes which can progress simply because the timing of payments is different to initial forecasts."

"Whilst there will inevitably be the occasional project which attracts attention for getting into difficulties, the schemes which are the subject of this particular motion do not fit into that category. The reality is that all but a tiny fraction of capital spending by Departments is delivered well within the funds authorised by Tynwald.”

Capital spending for 2007-08 was GBP68mn, compared with budgetary provision of GBP103mn.

The Government’s 2008-09 budget approved in February 2008 includes provision for capital payments totalling GBP170mn in 2008-09.