No fewer than four government departments are forecasting a budget overspend.

All departments received increased funding allocations in the February Budget with health and education getting an extra £59m between them.

But central government summary management accounts for the first three months of the current financial year show that overall government net expenditure is £1.7m worse than budget for the year to date and this is forecast to increase to £16.4m by year-end.

Four government departments are predicting to go over-budget by the end of the financial year.

The Department for Education, Sport and Culture is currently £1.2m below budget year to date but its full year forecast is for an overspend of around £1m. This is the result of income being below expectation and increased teacher pay awards.

The Department for Enterprise is currently tracking £2m over-budget but expects this to be £1.4m by year end. It is blaming - curiously - a slowdown in the housing market compared with last year, and a subsequent reduction of income, alongside increased costs within its motorsport division, which supports the TT and MGP.

The Department of Health and Social Care was already forecasting an overspend by the end of June this year, largely driven by increased costs in Manx Care, in areas such as off-island treatment contracts and additional drugs costs.

Manx Care’s year to date overspend was £2.9m but it had been forecasting that to rise to £17.8m by the end of the financial year.

A range of cost improvement savings have already been agreed by the Manx Care board to reduce the projected year-end overspend while continuing to maintain critical services.

The Department of Infrastructure income is having to contend with increased costs for the provision of social housing and the bus service and is forecasting to go £1.1m over budget.

Executive government including public sector occupational pension payments is forecasting a £4.3m overspend based on its year to date net position but this will be mitigated to an extent by forecast underspends in other areas, notes the report.

Departments have included a prudent provision for potential pay awards but this continues to be a major risk with above-inflation claims being made, said Treasury Minister Dr Alex Allinson.

He said: ‘The first quarter accounts show financial pressures on all departments, especially related to staff pay and inflationary increases in supplies and services. Across government, officers have been working on a range of efficiency measures and cost improvement programmes.

‘As the Chief Minister stated at the recent successful Government Conference, it is essential that we reinforce financial discipline and adhere to the financial plan to provide crucial front line services while reducing our dependence on reserves and proving value for money to the Manx people.’

The Department of Home Affairs is DHA is currently £0.1m below budget year to date and showing a full year forecast of an £0.3m underspend compared to budget. However, it is showing overspends within the Constabulary, Fire and Rescue Service and the Prison and Probation Service.

DEFA is forecasting to be on budget, after drawdowns from internal funds to reimburse costs including the meat plant subvention. Income is forecast to end below budget mainly due to the cancellation of the 2024 Food Festival but, says the report, the related cost savings are expected to more than cover this shortfall.

Statutory boards and bodies are expecting to be £1.1m below budget largely driven by an underspend in employee costs.

And the Legislature is also forecast to be under budget by year end, again mainly due to staff costs.