£22 million left in States budgets at the end of 2013

Friday 14 March 2014

States departments were left with £22 million in their budgets at the end of last year but have put most of the money into new projects aimed at supporting the economy.

The end of 2013 saw States departments finish £22.8 million under budget, but almost all of the money is being spent on a range of measures including boosting the Back to Work initiative, the Freedom of Information Law, recruitment of police constables, the new aircraft registry and additional theatre capacity at the Health department.

Of the leftover money, £2.7 million went back into the bank.

The underspend represented 3.5% of the total budget handed to States departments of £659 million. That total budget works out at around £12.5 million per week.

Treasury Minister Philip Ozouf said that by using the leftover money, departments were doing more to help the economy.

He said: “Each department had a task in 2013 to deliver against savings targets, which they have done. In doing so they have also ensured that funding can be reallocated to projects which need support and back the strategic priorities of the States. Under the previous budgeting regime, there was no incentive for departments to manage their finances over longer periods.

“This year, the reallocations requested by the Council of Ministers are focused on making general service improvements, but also have a strong focus on supporting employment.

“Significant progress has already been made to get people back into work through Back to Work employment schemes and projects, but more needs to be done. The allocation of £649,200 to employment projects will allow us to continue to promote initiatives which support the local employment market.”

Around this time last year it was announced that departments had spent £15 million under their budgets in 2012, and that taxes had brought in an extra £15 million on what had been expected.