The author of the 2014 Fiscal Policy Review, Professor Geoffrey Wood, pictured, said the island's reserves for large infrastructure projects could be gone as soon as 2016, due to past underinvestment into the pot.
He also labelled Guernsey's continued deficit, reaching its sixth year in 2013, another 'concern' and one that breaches a political pledge in the fiscal framework plan to wipe it out within five years.
While the island was also deemed to be lagging behind the UK in economic recovery, Professor Wood gave assurances that the States' finances were in a better position than they had been for some time and signalled further praise for savings achieved through the Financial Transformation Programme.
One area that was, however, highlighted for urgent attention by Professor Wood was the depleting reserves for capital investment.
'It needs expenditure control and to keep taxes coming in at a steady rate, but not increase them in such a way as to drive away business,' he said.
