Departments 2013 underspends to be reinvested

Departments across the States underspent on their 2013 budgets by £22.8 million. As the States agreed as part of the move to medium term financial planning, this money can now be reallocated to support projects which encourage growth and local employment and improve services.

 

The underspends will be reinvested by departments to fund a range of activities which are in line with the States strategic priorities. These include:

In 2013 a new system of fixed three-year budgeting was introduced. The new process provides greater flexibility for departments, allowing them to make a bid to keep underspent budget and reinvest it. The system encourages budget management across financial years for continuing projects or to meet new priorities.

This flexibility allows departments to meet changing spending needs, deliver longer-term savings and improve services in line with the strategic priorities approved by the States in 2012.

The Treasury and Resources Minister, Senator Philip Ozouf, said “Each department had a task in 2013 to deliver against savings targets, which they have done. In doing so they have also ensured that funding can be reallocated to projects which need support and back the strategic priorities of the States. Under the previous budgeting regime, there was no incentive for departments to manage their finances over longer periods.

 

"This year, the reallocations requested by the Council of Ministers are focused on making general service improvements, but also have a strong focus on supporting employment. Significant progress has already been made to get people back into work through Back to Work employment schemes and projects, but more needs to be done. The allocation of £649,200 to employment projects will allow us to continue to promote initiatives which support the local employment market.”

The 2013 underspends by departments have been delivered in addition to the £60 million made in annual savings during the same year.