Alternative funding might be needed for capital projects
Saturday 1st December 2012, 5:00PM GMT.
THE States has been warned it may need to find other ways to fund capital projects after consistently not hitting its annual target of spending 3% of GDP.
According to the latest independent review of the States’ fiscal policy, the government is spending only 2% of gross domestic product on its capital programme and may need to look at alternative funding streams.
In his annual review, Professor Geoffrey Wood, pictured, said: ‘Current reserves are sufficient to pay for the current programme, although in 2012 and 2013 expenditure from the capital reserve is expected to surpass funds allocated to it from General Reserve.
‘However, if the capital programme were to continue on a similar scale to that currently under way, it raises the question of whether it will be possible to replenish reserves to the level needed for contingencies such as breakwater repairs and other emergencies.’