STATES departments overspent their budgets by a combined £1m. last year.

The figure, which is still subject to adjustment and equates to a year on year increase of less than 1.5%, was released as part of Treasury and Resources’ quarterly bulletin.

That also revealed another huge hit taken by the public sector pension fund, which fell by £36m. in the last quarter of 2008.

Treasury minister Charles Parkinson stressed that some of the public expenditure was formula-led, so the department had no real idea what it would be when setting the budgets.

‘One area is off-island health treatment. This year the budget is somewhere in the region of £10m., but we have very limited control over the cost of it,’ said Deputy Parkinson (pictured).

In the bulletin he said the department strenuously denied allegations that the board did not take seriously its responsibility to restrain public expenditure growth.

The superannuation fund, which underpins the pension arrangements for public sector employees, stood at £718m. by the end of December, compared to £754m. at the end of September.