Accounts Show Guernsey Is £135M In Deficit

Tuesday, 27 June 2023 07:20

Policy and Resources warns demand for healthcare 'is impacting public finances now.'

The 2022 accounts record an operating deficit of £3M.

That's the difference between what government received in taxes, social insurance payments and interest, compared with what it spent.

That figure rises to £135M when the poor return on investments, depreciation and interest payable and received are factored in.

The accounts show most committees checked their spending, but Health went over budget by £3.7M

P&R's Treasury Lead, Deputy Mark Helyar, warns this is what islanders can expect in future:

"The continuing rise in demand for health services is impacting our public finances now, this is not a problem for the future anymore. International recruitment challenges and the impact of the war in Ukraine add to the already very difficult situation we’re in."

The ongoing war in Ukraine and its effects on the global economy meant the return on investments was down on the previous year, but the States say 'losses in one year can be recouped as markets bounce back.'

The accounts are in transition to International Standards, meaning the value of assets like land and equipment are shown, but not detailed. So is depreciation on these assets, which is £30M.

The accounts show the States employs just under 4,900 people.