The cost of a pint of beer could increase by 4p

It is part of a proposed package of measures which will introduce �9m of extra taxes and cut spending by �6m.

Finance president, Senator Terry Le Sueur, is presenting the budget to the States on Tuesday morning as a possible solution to the hole in the island government's accounts.

In his first budget, Senator Le Sueur is proposing adding 40p to a litre of spirits, 10p to a bottle of wine and 4p on a pint of beer.

Reduced rate

In 2003's budget the forecast deficit was �7m, but it rose to �19m during the year largely because tax revenues were less than predicted.

The proposed measures should raise about �15m, leaving a forecast deficit of �4m.

Other measures include the price of a packet of cigarettes increasing by 25p and a litre of unleaded petrol by 5p.

Vehicle Registration Duty could also increase by 25%, and next year it could also apply to hire cars, although at a reduced rate.

Buying a house will also become marginally more expensive, with an proposed increase in stamp duty.

Stamp duty would increase by 0.25 %, except for homes worth more than �500,000 which would see a 0.5% rise.

And homes worth more than �700,000 would be subject to a 1% increase - from 2% to 3%.

But the increases would not apply to first-time buyers.

The budget will be debated during the first States sitting in December.