Treasury Minister Eddie Teare has begun delivering his third budget to Tynwald.
In his speech, he told Tynwald the government is on target to make the savings it needs to compensate for the lack of VAT income under our agreement with the UK.
Mr Teare said he expects inflation to run between two and three per cent over the next year, with economic growth running at three to four per cent.
The Island’s Treasury Minister says he expects another 100 jobs to be lost on the Island in banking over the next 12 months, with the industry undergoing great change both at home and abroad.
He told the court global economic conditions meant trading had been very difficult for a number of companies.
But he did promise some relief for those who are feeling the pinch of the current economic climate.
Mr Teare told the court he hopes to help Island residents cope with the increasing cost of living: