Covid: Jersey budget spending deficit reaches £24m

Jersey's budget deficit last year was £24m as a result of the coronavirus pandemic, according to Government of Jersey accounts.

This is a drop of around £392m on the £368m surplus recorded in 2019.

Government expenditure last year was £1.6bn on annual revenue of £1.3bn, with overall spending up £270m while revenue remained the same as 2019.

However, the overspend was offset by £250m generated from growth in value of government investments, accounts show.

Of the £190m spent on the coronavirus pandemic response, nearly £100m went on payroll support for people unable to work as a result of restrictions.

Other key areas of Covid-19 expenditure was £16m on the island's Test and Trace System, £12m on fiscal stimulus programmes and £10m on the construction of unused the Nightingale wing of the hospital.

Chief Minister John Le Fondre said the accounts demonstrated the "wide-ranging support" offered to people and businesses and the "swift and sustained" response to the pandemic.

"We mobilised the largest financial support package in our Island's history, developed a testing programme which ranks among the most effective in Europe and put in place a comprehensive track and trace programme to mitigate the spread of the virus within our community," he added.

Outside of pandemic spending, £173m went on capital projects including:

Minister for Treasury and Resources Susie Pinel said the spending was a reflection of the government's priorities in an "unprecedented" year.

She said: "We are pleased that our income managed well in the face of the challenges we faced.

"We expect further significant impacts in the coming year, however, by not using the Strategic Reserve we are in a good position to recover and renew the economy."

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