States Authorities To Keep Tight Grip On Finances In Jersey

by Jason Gorringe, Tax-News.com, London

16 September 2002

The Jersey Evening Post reported last week that the States authorities are to keep a tight rein on their spending in 2003 in order to reduce the projected £30 million deficit.

In the Resource Plan 2002, approved last Tuesday, a limit of £444 million for public expenditure was set. It was also agreed that spending will not increase by more than 5% in 2004 and 2005.

It is hoped that governmental restraint in combination with a number of tax measures currently under discussion, will reduce the predicted deficit by £23 million to £7 million for 2003, and allow the States to balance the books again in 2004.

However, the JEP reported that the various departments will need to pull together if the fiscal efficiency drive is to be successful.

The local newspaper then quoted Policy and Resources vice-president, Senator Frank Walker as observing last week that:

'We must be united and committed to reaching our objectives, and not just for one year. We must commit to protecting the long-term economic future of the Island.'

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