Last year States spending increased by 1.4% – a rise below the rate of inflation, which means that public spending has gone down in real terms.
And instead of ending the year £6m in deficit as predicted by Treasury Minister Terry Le Sueur, they actually finished with a £3m surplus because of increased income tax and stamp duty receipts.
Under new accounting rules with the new Public Finances Law, the States actually showed a deficit of £84m because the £123m past liability on pensions was included in the year’s figures.
But the Strategic Reserve fund swelled by £38m, or 9%, to £456m – mitigating some of that loss.
Those figures are offset by the conservative valuation of States assets at £1.5bn, which Senator Le Sueur said indicated that the Island was in a healthy financial position.
Overall, departments spent £423m in 2005 and capital spending totalled £43m, against income of £469m.