Public purse bulging as surplus grows
Finance Minister Roy McTaggart in the LA
(CNS): With earnings up more than 8% and spending down by 5%, the government coffers are overflowing at the year’s halfway mark, with the surplus running at more than $201 million, about 50% higher than the budget forecast. Finance and Economics Minister Roy McTaggart released the unaudited financial report for 1 January to 30 June 2018, which revealed the whopping surplus for the entire public sector around $67 million higher than the $134.1 million originally expected.
The extra cash resulted from a revenue increase of $38.4 million and a drop in government expenses compared with predictions of $15.5 million. The statutory authorities and government companies (SAGCs) also helped with a windfall of some $10.4 million in surplus, as opposed to the anticipated deficit of almost $3 million.
However, the government has not yet revealed any plans to increase spending, despite a number of requests for an increase in spending, especially in the education budget. The finance minister said that in the second half of the year revenues are expected to decline, so by the end of the year the surplus may be more in line with what his ministry had called for when the budget was presented last November.
“As the trend for revenue is generally lower in the second half of the year, it is anticipated that the surplus will align closer to budgeted expectations by year-end,” McTaggart stated. “Government is confident it will achieve the budgeted net surplus of $81 million, at a minimum, by the end of this year.”
The government collected more revenue than expected largely as a result of higher than anticipated coercive revenues, such as import and stamp duties, tourist accommodation charges and financial services related revenues. But overall, government collected more money than expected across the budget, from trade and business fees to investment revenue.
With core government spending more than $10 million less on personnel and $11.4 million less on supplies among other areas, the savings coupled with the earnings helped to pack the public purse.
Government also has a very healthy bank balance, with cash and deposits of $576.1 million, which was more $110 million higher than forecast.
Category: Government Finance, Politics
Can we get an update on the $1 billion missing from the public purse too?
We can’t even retire two thirds of the outstanding debt that comes due next November…or acknowledge over a billion estimated in unfunded pension and healthcare liabilities, and this regime continues to talk about colossal unpopular infrastructure projects…on an island of so-called financial professionals.
Please try to stop talking about surplus. That comment will only make sense after all debt has been repaid, NAU has been shut down because everyone is in a position to fend for themselves, government is funding sufficient schools/ class rooms and supplies for every student, every civil servant has been trained to properly serve the public, the hospital has the staff and medicine to properly address medical needs in the country etc. etc. etc. until then please refrain from mentioning a surplus!! It is just a balance sheet crap that does not really mean anything!!
Debt conspicuously absent. Looks like the dim are being lined up to demand a give away…3…2…1…
Bizarre not to report CIG’s debt in this article. What is it now $450m? Whilst the current government are to be comended for their relatively sensible stewardship of our finances let’s not kid ourselves that there is money to throw away; we also have all that debt to service or pay off!
Time to cut the import duty on fuel!
nope…time to to give concessions for electric vehicles/solar panels…etc
I encourage the government to please spend all the surplus on getting themselves reelected, like i know they will, please do not disappoint your ppm disciples,please install more political appointees to govt jobs more free money programs to the ppm flock and please don’t forget your marriage partner bababushka and his political pirate hoard they need money tooo, after all we all in this together in this rape of Cayman
Time to cut the work permit fees then.
Time to top up the pension fund, for civil servants and give me more health benefit through Cinico , because right now I am paying CI$ 500.00 p.m. And my benefit is a measly CI$ 400.00 per year. year. Shameful so please do not insult me my announcing a profit.
An amazing achievement. Cayman is the shining star of the Caribbean OT’s and half the world. Bermuda is riddled in debt $2b and a defict budget. Look at where we are.
Thank you PPM and Civil Service. No wonder the opposition has been spouting at non issues over the past few months and grasping at straws. They realize that they will never be ministers in fact most won’t even get re-elected.
Miller remember you catch more flies with honey.
Cayman is also in debt, our infrastructure lays aging and out of date, you better pray to all the respective gods that no major hurricane rolls through our area, or no financial crisis hits the global markets because we will be up shit creek without a paddle
The ship always looks good from the outside, but the inside is filled with rotten wood waiting to fall apart
Here in Cayman we have spent the last 25 years playing fast and loose with our money acting as if the good times will never end and it is going to bite us in the ass
There aren’t enough hurricane shelters in the districts to provide shelter , the juciary has outgrown its faciltites, the prisons are full, the schools are full, traffic has never been worse, most people are living paycheck to paycheck with no disposable income in sight, our government is unable to muster good communications during potential emergencies (fuel depot fire, tsunami warnings etc) and the CIG has no real recovery plan in place for the immediate aftermath of a storm they will just be depending on the FCO to coordinate a response with British resources in the are
and remember its a matter of WHEN, not if
So much financial success yet Cayman is being sold from right under our feet??? yes surplus revenues Cayman but at what price to us.
And how does this help the Caymanian?
It could provide funds to overcome the rampant self-pity of vacuous moaners like you.
Wonder if the civil servants will ever see a pay raise. . . Or will all the $$$ be spent through the NAU?
You are in the wrong job if you’re looking for lucrative pay as a civil servant.
Fortunately they seem to have plenty of time for real jobs on the side.
Lets get two docks in George Town and a boardwalk that completely surrounds the island. Or we could just put it all on red.
Fake news!! Cant fix garbage problem cant pay overtime cant fix health care debts and we have a surplus boy you people are just plain stupid! And finally Alden’s Conundrum POVERTY!!! on top of that do some of you remember the last time they told us we had a surplus???? Unaudited financials ????? Keep drinking the ppm/unity koolaid ya hear!
I would encourage the Gov’t,to build a trade school from the surplus funds for young Caymanians leaving school who are academically challenged, so that they can be gainfully employed after finishing the course of their choice.Thus reducing the underemployment/unemployment issue in the future.
An ‘operating surplus’ does not mean the funds are surplus! We’re half a billion in debt and have at least double that again in unfunded public sector pension and healthcare liabilities.
Thank you Premier DG Ministers and Chief Officers. Yeah I am giving them credit cause I bet you we would be blaming them if the report was all gloomy!!
Revenue up costs down. At this rate CIG will be debt free in just over 5 years.
Think you will find that it would take a lot more than 5 years to cover the unprovided for pension and health liabilities. And that’s before we throw away the cruise landing fees to fund the construction of the $300m cruise pier.
shhhhhhhh Jotnar, they don’t want to be bothered with unimportant details like “reality” “the truth’ or “the real costs we have left to pay”
They want us to all come together to sing kumbaya and worship this “unity government”
Because braindead political optimism sounds more pleasant to their ears than realism and talking about the issues
How bout save a bit more by dumping your ludicrous dock fantasies. Finish projects from your last term (EW Arterial, BT dock), fix the infrastructure and for God’s sake spend it on education and vocational training.
wow…imagine where we would be if the waste in the civil service was ever tackled…
a rising tide lifts all ships….
ppm have done nothing except sit on their hands while benfitting from darts investment and strong north american economy…
name one economic policy they have introduced????
Except republican administrations have a proven track record of deregulating industries, cutting taxes and allowing the market to tank all in the name of “free market Capitalism”
Causing rampant job losses for the middle class and the poor while the rich run out the back door with the profits or as we saw in 2008/2009 get bailed out with taxpayer monies
https://www.cnbc.com/2018/08/08/trump-administration-cuts-staff-at-financial-markets-watchdog.html
– Within the last two weeks Trump shrank the department responsible for analyzing potential risks to the economy and market trends
and I’ll tell you one thing, its not because the market will never crash again, most of the Obama era regulations put in place to prevent another recession on the scale of 2008/2009 have been rolled back under the republicans
Roy Mctaggart is the saving grace of this government! He’s the only one of the entire bunch that I would keep. Keep up the good work Roy!
lets vote them back in again so they can tripple the cist if living?????????
take half, pay off gov debts.
Take other half invest it. Nothing says you can’t invest 200 million into something. Countries like norway have taken their surpluses and invested them into funds and other blue chip type investments. And now their entire social service runs for free, due to the money generated from the investments.
Place a dock in bodden town, and put the shipping dock at savanah spotts, and get rid of the shipping dock in town. Making the old shipping dock (with a small extension) as a second tourist dock in george town,(also lessening the environmental impact of the tourist dock) And government mandates no more than 3 cruise ships per dock. And voila. Business and companys will start spreading over the island. Reducing traffic into george town. Creating jobs in bodden town, because someone has to work at the bodden town dock, then feed them, then house them, trickle effect. And less people coming in from bodden town committing break ins, cause now they can find work in bodden town. (sorry boddies, but ya know it’s true)
all while leaving east end alone.
Win, win and win.
I should run for office
CIG has around 500M in debit. They are forecast to have around a 100M surplus this year. So your idea to take 1/2 the surplus to wipe out the debt and the other 1/2 to invest 200M in something tells me you really do belong in office 🙂
Acknowledged debt…does not include forecast unfunded pensions and healthcare liabilities estimated at over a Billion, and kicking-in over next 5-10yrs. No capital reserve or anticipatory infrastructure sinking funds for sea level changes or other inbound geological realities.
Norway’s entire social service runs for free? That’s why they have a social security tax of 22% on top of personal income tax of 38% and VAt of 25% then?
Norwegians still alot better off than most Caymanians
Please invest some in our young, elderly and genuinely less fortune people.
oh won’t someone please think of the children???
Don’t get too excited. The operating surplus doesn’t include debt repayment.
And they plan to throw it all in the sea!
Start a sovereign wealth fund now! Our children are going to need it!
Down the road I like the idea. However, I’d have a VERY low level of confidence that CIG would earn a return on any such fund higher than the interest rate they have to pay on their debt. Thus, first I would pay off the debt.
What about the debt? The surplus is going to be needed to pay it off. As for a SWF which genius are you going to get to invest it?
True heroes. Good job guys
Maybe we can ease up on the “permits for whoever can pay” policy now.
Expats fees are paid up and Caymanians enjoy it all.
Boooy you can talk some s*@t. Many places in the world don’t give you the option to “pay”. Be thankful as it’s much easier here than other jurisdictions.
Thank God McKeeva doesn’t have control of the purse strings.
Pay down the debt! Put some aside for a rainy day! Those unfunded liabilities are not going to disappear with good news.
Lets spend it all before Pensions and Medical unfunded liabilities become a reality.
Pay off your debt!!!! Never know what tomorrow will bring and more borrowing may be required. So lower public debt levels now while you can!
This is what happens when we have qualified and experienced people in government. Well done Roy!!!
Taking credit for the weather, oh me! Next they will be telling us what God wants, oh my?
Who?
Smart guy but don’t think you can give him credit for increases in duties, room taxes, and financial services? We can however thank Aldart and Micro for the continued record permit fees. Thanks guys…would buy you a drink at C&W but I’m broke.
Money in the bank so let’s give the people 2 weeks of road side clean up and call it a job to acquire new skills. No need to invest in training programs. This is the logic of the PPM and Joey Hew. SMH
This is the kind of good things you hear before the bad news come . I need more money .
Then how about dropping the duty in fuel? Five the working people a break. Drop the import duty? Do something other than getting fat! Our government sucks
Say it again…for the eyes open sleeping fatso’s!
So we should just ignore the half a billion dollars debt then? Perhaps if everyone didnt drive gas guzzling crappy American monster trucks they could afford fuel!