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Falklands’ budget enjoys additional surplus boosted by the oil industry

Saturday, April 28th 2012 - 06:11 UTC
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Management Accountant Daniel Heath confirmed a positive performance of £ 10.898M Management Accountant Daniel Heath confirmed a positive performance of £ 10.898M

The Falkland Islands oil industry has contributed with an unexpected addition of £9.2M to the Falkland Islands Government (FIG) budget in the first nine months of the financial year 2011/12, reported the Islands government Standing Finance Committee.

The contribution is made up of income tax from oil workers, and corporation tax from oil companies, among other items.

Added to this, £5.6million from illex licence revenue (£4million above budget) and favourable performances by a number of government directorates, FIG now boasts a budget surplus of £14.513M, added the Committee Meeting.

Compared to a revised budget surplus of £3.615M gives a positive performance of £10.898M confirmed the Falklands’ government Management Accountant Daniel Heath.

Regarding the illex revenue Director of Fisheries was reported to have assured that the department anticipates no more than a 40% refund to fishing companies. A 50% refund, which is still a possibility given the current level of catch, would reduce this additional revenue to £3M. A particularly successful season, with no refunds, could see illex revenues as high as £9.4M.

Revenues within the Natural Resources Department have also been boosted by oil exploration companies paying out for berthing fees (£169K), purchase of water (£58K) and rent received (£109K). These increased revenues are expected to continue for the period of exploration.

Health and Education has also shown a favourable £348K surplus, partly as a result of the Medical Services Tax (MST) which is currently £413K over estimate.

Current projections indicate total revenues for the year coming in at £546K over estimate.

A number of Falklands’ directorates have budgets showing a spend lower than expected at this point in the year including Central Services which shows a favourable £192K while Health and Education also shows a favourable £10K.

Even the Public Works Department achieved a £52K under spend and Natural Resources a £161K under spend and Mineral Resources were £121K favourable. The latter is driven by a £115K saving in hydrocarbon consultancies.

Speaking of Capital Expenditure Mr Heath said capital schemes were currently behind schedule by £454K. (PN).-


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  • stick up your junta

    This is for think :-))))))

    Apr 28th, 2012 - 06:28 am 0
  • Joe Bloggs

    Steady as she goes for another few years MLAs until the oil starts to flow properly. Then improve our infrastructure. Stanley's sea front, cruise ship arrival area, Dockyard, Ross Rd, deep sea port and MPA Road. These would all get my vote as priorities for capital expenditure. We have to invest in projects that will continue to realise outside income after the oil has all gone in 20/ 30 years.

    Apr 28th, 2012 - 06:51 am 0
  • Doveoverdover

    Some of the money will need to be spent building up self protection against envious, avaricious, deluded and increasingly desperate neighbours. The Islands' Government can only rely on UK up to a point. A truly capable maritime arm of the FIDF is needed. Say three corvettes to operate as OPVs. I just happen to know were three such vessels can be sourced and can name a man ideally placed to take this idea forward (i.e. me). Pirates of the South Atlantic indeed.!

    Apr 28th, 2012 - 07:29 am 0
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