The States heard a hospital rebuild will go over its £3m budget

More than £12m has been allocated to departments next year in a plan by Policy and Resources which has been released to coincide with the budget.

Treasury and Resources Minister, Deputy Lyndon Trott, said prioritising schemes was essential to safeguard spending on essential projects.

The plan has to be approved by politicians at their December meeting.

Mr Trott said: "We need to have a corporate agenda that says, for instance, that the priority is health care, the provision of the best education system we can provide.

"We need to identify that and we need to appreciate the consequences of our actions towards one particular sector and the knock-on effects it may have."

States departments want to spend more than £1bn on capital projects over the next decade, with more than half of that expenditure between now and 2007.

Environment is planning to spend £98m, Education £94m, Housing £88m, Health £85m and Public Services £44m.