MercoPress. South Atlantic News Agency
Falkland Islands annual budget carefully balanced
Unexpected increases in investment revenue and taxation have both contributed to a better than expected year for the finances of the Falkland Islands Government.
The estimated end of year budget for 2005/6 now shows a budget surplus of £4.2 million, as opposed to an estimated deficit of £393,000, this despite a reduction in fisheries revenue and additional unexpected expenditure of £2 million.
At 30th June 2006 it is estimated that the balance of the Falkland Islands Government Consolidated Fund will be £90.5 million, which equates to slightly more than the policy target of 2.5 years worth of operating expenditure
This was the good news that the Falkland Islands Government Financial Secretary, Derek Howatt, was able to deliver to the members of the Islands' Legislative Council at the beginning of their two-day long budget session this week.
The currently much improved season for Ilex squid in the South West Atlantic and the hoped for corresponding increase in confidence in the Falklands fishery after two disastrous years has contributed to a £2 million increase in the estimate of fisheries licence revenue for the 2006/7 financial year, contributing to a budget figure for operating revenue of £42.8 million. This results in an estimated budget surplus for next year of £745,000.
In presenting his draft estimates on Wednesday morning, the Financial Secretary said that they reflected the budget strategy and policy approved by Executive Council in September of last year. He added that a balanced budget was achieved, but only after prioritising expenditure in a climate of static income levels, rising costs and expectations to keep pace with best practice and modern technology.
The presentation of the Draft Budget comes at the end of a long and comprehensive process involving heads of government departments, Treasury officials and two separate meetings of the Standing Finance Committee (SFC) on which all eight elected members pf Legislative Council sit. It was therefore no great surprise that when the agreed budget returned to the Legislative Council on Wednesday afternoon, after a final scrutiny by SFC, no adjustments were made to operating revenue and only one adjustment to operating expenditure. This was in relation to the medical treatment overseas budget.
Medical cases receiving urgent or special treatments beyond the scope of the Falkland Islands Government Medical Service are routinely sent to hospitals in the UK or Chile for treatment. The Financial Secretary explained that the revised medical treatment overseas budget for the year 2005/6 year amounted to £1.075,000, however for various reasons this was considered exceptional and it was therefore decided to reduce the budget provision for 2006/7 by £250,000 to £750.000 which is close to the average for the past three years.
Concluding his presentation of the Falkland Islands Government Budget for 2006/7 on Wednesday, the Financial Secretary echoed the sentiments of Councillor Mike Summers during the previous day's session: "The outcome of the budget once again confirms that the economic and social well-being of the Falkland Islands can be maintained with or without the cooperation of the Argentine Government."
John Fowler (Mercopress) Stanley
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