Government spending on capital projects is set to continue, despite the looming loss of around £90 million to the coffers when the new VAT agreement comes in.
Treasury Minister Allan Bell says projects must keep being brought forward to support the Isle of Man's construction industry.
Mr Bell delivers his ninth Manx budget in Tynwald on Tuesday, the same sitting at which Education Minister Anne Craine will ask government for £11 million for a new primary school in Douglas.
Mr Bell says construction, which has suffered something of a slow down of late and seen workers laid off, must be supported.
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