Financial shortfall - the TRUTH please

Before we seek to provide remedies for the financial predicament faced by the Island, can someone please tell us in all honesty the real figures in respect of the annual revenue deficit.  Prior to his departure, Mr Bell told us that the deficit was in the order of £70 million pounds per annum.  Additionally the Pension Reserve Fund would be exhausted in approximately 4 years time and that the £50 million pounds that this fund provides annually would have to come out of current taxation.  In this scenario therefore, the true annual deficit could well be in the order of £120 million - a far cry from the £25 million suggested here.  PLEASE can someone tell us the TRUE position?

Why the contribution is important

You cannot come up with a solution if you are not fully in the picture about the problem.

by acw on April 06, 2017 at 07:00PM

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Comments

  • Posted by dpfellows April 06, 2017 at 21:03

    Towards the end of the Budget Speech it indicates that Public Sector Pensions cost £99.2 million pr annum at present and that when the fund runs out an ADDITIONAL £58 million will have to be paid directly by taxpayers - so in reality a deficit of approximately £41 million is currently being taken out of the services paid for from general revenue to pay for the pensions and the £58 million is an extra amount to come out of monies normally used for public services. It is also stated that there is a structural deficit of £80 million being paid for out of Reserves and income on Reserves i.e diminishing not growing Reserves. Currently it seems that the real deficit is about £120 million and it has the potential to grow to £180 million as money is diverted from public services to unfunded public service pensions.
  • Posted by Manxcat April 07, 2017 at 09:01

    I seem to recall the previous administration telling us they had balanced the books, though they had eaten into reserves, the implication being that running costs break even, but they want more to be able to replenish reserves.

    Yes, clear true facts would be good.
  • Posted by KarenIOMGov April 10, 2017 at 11:33

    For clarity, please refer to the 2017-18 Budget, page 9; table 4 which shows the structural deficit.

    https://www.gov.im/[…]/isle-of-man-budget-2017-18.pdf

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