The States accounts for 2016, which were published on Friday, reveal the capital value of the Strategic Reserve, or ‘rainy day fund’, and Social Security Funds rose by £105 million and £287 million respectively.
The States Treasurer, Richard Bell, also said that the government was on target to close the previously forecast budget deficit of £145 million by 2019 and was predicted to run a surplus of more than £7.5 million in that year.
The cash boost means that the States’ total revenue last year was £1,502 million – £307 million more than the £1,195 million that was spent.
Following last year’s Brexit vote, the value of the pound slumped dramatically, meaning that the value of the foreign-based investments held by the States soared and created a huge windfall for the Treasury.
The States coffers were further boosted by £45 million as general revenues, including stamp duty, GST, corporation tax and income tax, also increased substantially because employment, earnings and the economy have all improved.
Mr Bell said that 2016 was a ‘brilliant year’ for the Island’s finances but warned that it was a ‘one-off’.
He added that the additional money would be kept in reserve to protect against future uncertainties such as Brexit and States plans to reduce expenditure would continue.
