Isle Of Man Treasury Publishes 2002-03 Draft Accounts

by Robert Lee, Tax-News.com, London

30 May 2003

Tax revenues in the Isle of Man fell last year whilst expenditure increased to £396.4 million, according to draft accounts released by the Treasury last week, although government finances remain in surplus.

"The actual gross income of £606.6 million and the actual gross expenditure of £594.3 million resulted in a surplus for the year before appropriations of £12.3 million. From that surplus, £30 million was transferred to reserves, leaving a net deficit on the year of £17.7 million," the Treasury revealed.

However, when the £36.5 million balance carried forward from the previous year is added to this £17.7 million net deficit, the balance remaining on the general reserve account equals £18.8 million.

Other statistics show that income tax revenues fell from £462.2 million to £405.2 million, and that the value of external investments declined to £888 million from £1 billion. Noting that the island's external investments included exposure to equities, the Treasury explained that: "although their market values can and have fluctuated downwards from time to time, the broad and long term trend has been upwards".

However, the Treasury's figures show that the value of externally invested funds had in fact increased between March and April this year from £628.3 million to £662 million, without any new investment being added.

The accounts revealed that the Treasury's gross expenditure of £594.3 million was £3 million lower than its revised estimate, the original estimate having been put at £581 million with an additional £9.6 million for supplementary revenue votes, the majority of which went towards £8.1 million in pay awards.

The draft accounts will be subject to a public audit later this year, after which they will face scrutiny from the Tynwald.

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