Far from being a sign of economic strength, the surprise £27 million surplus is evidence that Jersey is over-taxed as the recession continues to bite, according to a damning analysis published today.
Theta Asset Management have published a report on the States of Jersey’s 2012 accounts, in which they warn that the government needs to prioritise the health of the economy over the health of the States’ finances.
The analysis, jointly written by former Senator Ben Shenton and his colleague Andrew Du Val concludes:
‘Our view is that the economic downturn was made worse through poor economic policy management. The combined effects of “20 means 20”, GST increasing in 2011, and increased Social Security pulled too much disposable income out of the economy at the wrong time and, coupled with global and technological changes, has led us to where we are.’