Property tax and water rates in Alderney are not set to increase with the States expecting a £400,000 surplus this year.
It follows the approval of the 2025 Budget by States members on Wednesday.
An increase in investment interest and higher than expected returns from document duty and property transfer duties were reported as key factors contributing to the estimated surplus.
Policy and Finance Chair Nigel Vooght said: “Despite delivering this balanced budget, we must be conscious of the simple act that Alderney is living beyond its means.”
Under the 1948 agreement – agreed to help Alderney recover after World War Two – Guernsey is responsible for paying for many public services.
Vooght said: “The cost of transferred services such as healthcare, education, the airport and emergency services exceed the taxes paid to the bailiwick to help to pay for these.
“Despite the likelihood that income tax may increase, these services cost more than we contribute to the Guernsey Treasury.”
He added: “Although we are a separate jurisdiction, we are in a fiscal union and partnership with Guernsey and must look for ways to grow our economy to generate new revenue streams.”
The budget for next year suggests a “break even” surplus of £29,000, as operational costs are budgeted to increase by £354,000 compared with this year.
