Deficit shrinks to £24m.

GUERNSEY'S new States will have to deal with a budget deficit of £24m. left by its predecessor, accounts released this morning reveal.

Outgoing Treasury minister Charles Parkinson, pictured, said in the foreword to the States Accounts for 2011 'that States expenditure remains under control'.

Net revenue spending by departments and committees rose by £2.8m. - a decrease of 1.9% in real terms.

'This outcome provides further evidence that departments and committees are collectively embracing the States policy of a "real-terms freeze on aggregate States revenue expenditure" and delivering results within this target, including through projects delivered as part of the Financial Transformation Programme.'

That programme is a key cost-cutting initiative that delivered £3.9m. of savings during 2011, although £2.9m. of this was spent on new services.