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States Of Guernsey To Discuss Fiscal Policy Plan In July,
by Jason Gorringe, Tax-News.com, London
Tuesday, June 16, 2009
The States Strategic Plan (SSP) is the successor to the 2007 Government Business Plan, but unlike
the previous plan, it will interlink strategic policy objectives with financial
planning processes and the prioritised allocation of resources to meet the States’
aims. The SSP will be the amalgamation of three different sub-plans, which will
be tabled on July 15 for endorsement; the text will include a Fiscal and Economic
Plan, Social Policy Plan and an Environmental Policy Plan.
According to a statement from the Guernsey government, financial considerations
will be of key importance in the new SSP, but at this stage the States are not
being asked to come to any decisions about funding of the prioritised initiatives
described in the plans, but only to agree that these initiatives should go forward
to the next stage of consideration.
A draft version of the SSP will be presented in September and will draw together
all resource bids for new service developments to 2013, the revenue implications
of the States' capital programme and, importantly, the projected efficiency savings
to be achieved through the Fundamental Spending Reviews.
In a previous statement the government announced that it would be forced to
introduce new domestic taxes or increase existing ones in order to finance the
jurisdiction. The government has recently passed an enabling law for the implementation
of a Goods and Services tax in Guernsey, although the government did underline
that it may not be implemented, adding that it is ‘merely considering
its options’.
The States of Guernsey has rejected proposals to finance upcoming projects
with borrowed money. It is instead almost certain that Guernsey will offset
the cost of the local investment through increasing taxation on domestic taxpayers.
In March the government announced that it would have to increase its annual
revenues by GBP52m in order to address its structural deficit by 2017.
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