TREASURY Minister Eddie Teare says he remains confident that the island remains on course to meet its financial predictions for this and the next couple of years.
He made the comments as he announced he had embarked on a comprehensive programme of engagement with the local business community as part of preparations for next year’s Budget.
Meetings have taken place with representatives from a cross-section of industries to discuss the Isle of Man’s economic outlook for 2013 and beyond.
Treasury is currently working up a Budget framework and projections for the next three years to assist Government departments with their long-term planning.
The focus will again be on the government’s core priorities of stimulating economic growth, rebalancing government finances, and protecting the vulnerable.
Mr Teare and Treasury colleague Phil Braidwood MLC, together with Alan Crowe MLC, the member of Economic Development with responsibility for financial services, have so far held 40 meetings with key individuals across economic sectors including financial services, engineering, manufacturing, e-gaming, construction, retail and real estate.
Those views will be fed into the Budget process.
Mr Teare told the Examiner: ‘We have a two-legged economy at the moment. One side which is dependent on local spend - construction, hospitality, catering - is coming under pressure but the part that is outward facing - manufacturing, e-Gaming, financial services - are doing well. Taking the economy as a whole it’s still growing and I’m confident we will be able to meet our financial projections.’
The economy is forecast to grow by a heathy 6 per cent, of which inflation will account for three per cent.
Mr Teare said: ‘Preparing a Budget is a complex challenge, with a multitude of domestic and international factors to take into account.
‘We always try to look at the bigger picture and act in the best interests of the island as a whole when drawing up our proposals. The business community obviously has a vital contribution to make and Mr Braidwood and I have gained a valuable insight into current thinking during the course of our many meetings.’
Mr Teare said that while government’s budget strategy remained on target, difficult decisions would still be needed in order to complete the rebalancing process by 2016 as planned.
External factors, such as reduced economic activity in the UK and the threat of a triple-dip UK recession, would also have an impact on the island, he said.
‘We have made solid progress in our work to put public finances back on an even keel, but tough political decisions will have to be made in the years ahead,’ he added.
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