Income Tax brings in £21.3m more than government expected 

That overspend was related to the cost of the mandate to Manx Care and covers additional expenditure on services arising during the year above the operational budget allocation, government says.

Treasury reports that economic growth was as forecast with an increase in government income, and the additional revenue brought in by Income Tax was due to factors such as higher interest rates benefiting savers and the real growth in earnings.

It adds: 'With the successful finalisation of the FERSA calculations announced in March, there is now more certainty regarding income for the next five years and an accounting provision of £51.5 million was able to be released back to reserves.'

Treasury Minister Alex Allinson says: ‘The publication of the full-year Summary Management Accounts is designed to provide transparency around how the Isle of Man Government has performed against the budget over the previous financial year.

‘It is positive that Income Tax receipts are higher than expected and we continue to monitor this area to understand whether the increase will be restricted to this year or will be repeated in the future.’

He added: ‘These accounts demonstrate that while considerable challenges remain around funding the cost of healthcare – a position that’s not unique to the Isle of Man – Government has achieved a stronger level of control over our expenditure, and I’m pleased to report that greater monitoring and collaboration across the organisation has succeeded in ensuring all other departments are operating within their budgets.’