Chief Minister Tony Brown says this year’s budget will see government departments tightening their belts, but there won’t be cuts in services.

Balancing the books for 2009/2010 means the government can only expect to have ?200,000 left over at the end of the next financial year, compared to ?14 million over the twelve months to March 2009.

Mr Brown says the break-even budget means there won’t be more money for departments later in the year, but efficiency savings can be made, and all ministers have been looking at ways of saving cash.

He told Manx Radio:

"I don't think the word 'cut' is correct, because no department has been cut.

"What we have asked departments to do, and I made this very clear to the ministers last year, was to look at being more efficient in how they allocate their funds.

"(They must) ensure as much efficiency as possible through their department officers, brought in to make sure we can still be effective, but that we reduce as much as we can where we may waste some of the work that we do.

"In other words, look round, see if we need to do it, and if we don't then let's use that resource elsewhere."