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WQ.107/2024
WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES
BY DEPUTY M.B. ANDREWS OF ST HELIER NORTH
QUESTION SUBMITTED ON TUESDAY 2nd APRIL 2024
ANSWER TO BE TABLED ON TUESDAY 9th APRIL 2024
Question
“Will the Minister advise –
- what long term funding plans she has, if any, to increase the fund value of the Strategic Reserve; and
- whether it is her has assessment that the value of the Strategic Reserve can be increased through existing revenue streams to the levels recommended in the most recent Fiscal Policy Panel Annual Report?”
Answer
- The long-term aim is to grow the Strategic Reserve. The Fiscal Policy Panel have recommended that the 2019 prior-year taxation debtor should be transferred to the Strategic Reserve, and as outlined in the Government Plan 2024 – 2027 this remains under consideration;
“Ministers have considered how this asset can support the strengthening of the Balance Sheet, including increasing the value of the Strategic Reserve, the Stabilisation Fund and investment in the Island’s infrastructure through capital projects. This is a potentially complex issue, and requires the input of the Treasury Advisory Panel, before inclusion in the next Government Plan.” (see page 87 Government Plan 2024-2027)
- It is a priority to grow the Strategic Reserve to the Fiscal Policy Panel recommendation of between 30% - 60% of GVA. It is possible for existing revenue streams to be used but these would have to be reprioritised from other areas of revenue or capital spending. This would require Council of Ministers agreement and States Assembly approval. However, given the challenges of reprioritising budgets away from delivering and investing in public services, alternative funding strategies are being explored.