Jersey Treasury forecasts higher tax revenues

Higher than expected tax revenue and lower than expected spending during 2012 have been predicted by Jersey's Treasury and Resources Department.

The department predicts £625.8m in revenue, £13.5m more than forecast, and States spending of £622.2m, an £8.2m underspend.

Senator Philip Ozouf said spending limits for departments were unlikely to be increased.

He said the extra funds could be used to stimulate the island's economy.

Senator Ozouf said if that was done it was important to remember the advice of the Fiscal Policy Panel.

He said: "We should recall their advice from May this year that if additional expenditure is required to stimulate the economy it should focus on projects that can be brought forward and have intrinsic economic value in their own right, and this should be done in a timely, temporary and targeted manner."