Capital investment in infrastructure and a sustainable environment

Capital expenditure, whether ‘direct’ (out of general taxation) or funded by reserves and debt, is essential to maintaining the island’s infrastructure. The current mandated target of 3% has rarely been met over the last two terms. Expenditure should be planned over time through an infrastructure programme which goes beyond the time horizon of a medium-term financial plan, and whilst also requiring a longer-term Sinking Fund for larger projects.