The Isle of Man Government’s annual budget for this year is set to be announced today.

Treasury Minister Dr Alex Allinson will set out the island’s budget during an address to Tynwald this morning.

Tynwald members have already been warned that difficult decisions are needed to balance the books. Dr Allinson previously said: ‘This year has probably been one of the most challenging we’ve faced.’

The island’s public finances are still recovering from the impact of Covid and have taken a further battering from inflationary pressures and higher costs, including significant pay awards for frontline workers.

But with household incomes squeezed by the cost of living crisis, any moves to place a further financial burden on residents will never prove popular.

MORE ON THE 2024 BUDGET

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* How much of its savings has the Isle of Man Government spent in the last year?

* Past year has ‘been one of the most challenging Isle of Man has ever faced’

* New state pension and child benefit changes explained

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* All Isle of Man Government departments will get more money - two alone will get an extra £59m

However, the Treasury Minister may have little alternative.

The island is running a structural deficit this year of more than £125m.

Tynwald will be asked this week to approve an extra £46.7m in supplementary votes to cover department overspends.

This will be the Minister’s second annual budget.

You can follow live updates on the budget and other issues in today’s Tynwald sitting on our blog below.