States income is down, black hole now £25m.
GUERNSEY'S financial black hole has grown to £25m. – £8m. more than expected – with a struggling economy mostly being blamed.
The deficit in States finances at the end of 2013 was up from £20m. in 2012. Accounts released this morning also show that more senior employees are in higher pay brackets, while both Health and Social Services and Housing have recorded overspends.
States income was £10m. short of expected because of lower income tax receipts from individuals, a decline in document duty because of a subdued housing market and a shortfall in what was anticipated from extending the type of business that has to pay 10% income tax under the zero-10 regime.
Treasury minister Deputy Gavin St Pier said that there were options under consideration to boost the economy.
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