Guernsey States accounts reveal £17m deficit in 2010
Guernsey spent £17m more than it earned in 2010, according to accounts released by the Treasury and Resources minister.
Deputy Charles Parkinson said the island's income had reduced because of a strategy of low corporate taxation and because of the economic downturn.
However he described the accounts as positive and said they showed "that a balanced budget can be achieved without the introduction of new taxes".
Guernsey's overall reserves stood at £646.3m at the end of 2010.
The island's revenue from individuals' income tax fell by £10.3m compared to 2009 and that from companies by £6.4m.
The accounts showed the only one of the island's 10 government departments to exceed its 2010 budget was Health and Social Services, which overspent by £2.2m.
Deputy Parkinson described the figure as disappointing but not unexpected and noted that the department had managed to reduce its spending on off-island treatment by 13% to £16.3m.