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Expenditure Proposals for 2012 and 2013 and Draft Budget Statement 2011 (P.157/2010): third amendment (P.157/2010 Amd.(3)) – second amendment (P.157/2010 Amd.(3)Amd.(2)) – comments

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STATES OF JERSEY

EXPENDITURE PROPOSALS FOR 2012 AND 2013 AND DRAFT BUDGET STATEMENT 2011 (P.157/2010): THIRD AMENDMENT (P.157/2010 Amd.(3)) – SECOND AMENDMENT

(P.157/2010 Amd.(3)Amd.(2) – COMMENTS

Presented to the States on 6th December 2010 by the Council of Ministers

STATES GREFFE

2010   Price code: A  P.157 Amd.(3)Amd.(2)Com.

COMMENTS

The Council of Ministers suggested that the Minister for Treasury and Resources bring this amendment in order to allow a full discussion of the options available to maintain the required budget profile.

The Council of Ministers makes these additional points –

  • If approved, GST exemptions would reduce States net income and increase deficits by £4.6 million in 7 months of 2011 and £7.9 million a year from 2012.
  • If   Deputy  Green's  proposal  were  adopted  unamended,  the  Council  of Ministers' plan to deal with the structural deficit and balance the books by 2013 would be compromised.

For these reasons, States members should have the opportunity to debate the subject of GST exemptions with a revenue-neutral consequence.

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P.157/2010 Amd.(3)Amd.(2)Com.