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Treasury Minister Anne Craine is warning the government purse strings will tighten further in next month's budget.
She will deliver her first budget on February 15, with the focus on reducing government spending to offset the 'black hole' in public finances, caused by the loss of VAT revenue.
In last year's budget, her predecessor Allan Bell announced a five year plan to bridge the gap.
Last year government worked around an £85 million loss of income, but the figure rises to £142 million in the forthcoming financial year and beyond.
Mrs Craine says the government has tightened its own belt, albeit without making anyone redundant yet:
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