Falklands Windfall

29 Oct

A financial update from Penquin News:

A SURPLUS of £19.3M was achieved in 2010/11 against an original budget deficit of £1M according an external audit of the Falkland Islands Government.

A paper on the subject notes, “However, the full picture is not as rosy as this headline might suggest.  There are a number of windfall factors that need to be highlighted.  There are two areas which FIG can’t influence and a third which was not anticipated at the time of the budget, that have significantly impacted on the results for the year:
Investment returns £6.5M
Fishing licences £7.3M
Oil Exploration £6.5M

“It should also be noted that in the first two months of the 2011/12 financial year investment portfolios have decreased in value by £4.4M due to the drop in global markets.  Therefore a significant portion of the additional investment returns received last year in this area have already been wiped out.

“Net Liquid Assets at the June 30, 2011 totalled £110.2M;  equivalent of 2.9 times departmental expenditure.”

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