Government coffers overflowing

| 13/05/2019 | 43 Comments

Cayman News Service(CNS): The Cayman Islands Government appears to be on track for another year of significant earnings, with the public purse bursting at the seams, according to the unaudited financial results for the first quarter of this year. Figures released by the finance ministry reveal that, following news that government collected a whopping CI$830 million in 2018 (CI$99M more than forecast) it has begun 2019 with a surplus of $216.8 million, which is over $44 million more than it had expected. The 8% increase in revenue compared with last year was largely due to an increase in stamp duty.

Having exceeded expectations for revenue and spent slightly less between the start of the year and the end of March, government now has a bank balance of $747.1 million in cash and deposits.

Government collected $373.7 million in revenue in just three months, which, coupled with lower than budgeted expenditures in personnel costs, purchase of supplies and consumable goods and services, has put the public purse on track for the rest of the year.

Cayman News Service

Source: Ministry of Finance (click to enlarge)

“I am delighted and the government is pleased that the 2019 first quarter’s actual results exceed budget expectations for this time-frame,” said Finance Minister Roy McTaggart. “All things being equal, it bodes well for the remainder of the year. As always, we are grateful to the civil service for their contributions and their work to save government money.

“We also believe that strong public finances set the tone for the wider economy and, of course, for the continuing success of our economy. At the same time we will continue fiscal vigilance and monitoring throughout the remainder of the government’s 2019 financial year to maintain improvements on budget expectations,” he added.

According to the report, while the bulk of the revenue was collected by core government, statutory authorities and government companies (SAGCs) also did better than expected.

SAGCs that updated government on their performance recorded a combined net operating surplus of $1.3 million, some $2.8 million more than expected. This was due mainly to the Cayman Islands Monetary Authority and the Port Authority but the performance of these two authorities was partially offset by the unfavourable performance by Cayman Airways Limited.

Despite the caveat that the first quarter is always the best in the year for coercive revenue, because government collects most of its annual fees from the offshore sector during this quarter, officials were optimistic in the report that this  performance has put the government in a favourable position to meet its budget target and comfortably deal with the bond repayment due in November.

See the report in the CNS Library

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Category: Government Finance, Politics

Comments (43)

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  1. Anonymous says:

    I don’t call it a surplus of money when there is so much to do in the country. Provide medical care and prescription medications for the elderly who cannot afford it.
    The hospital is busting at the seems. The emergency room needs to be at least doubled in size. How about building dialysis centers in a few other districts. There is no reason the outer districts should have to go to town where the dialysis unit is overflowed and open almost all hours. Relief is needed.

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  2. Anonymous says:

    and the cost of living goes up and up salaries are not going up in pace with the increases. I don’t know about anyone else but my pay check has to stretch further and further every month. I’m not able to save a penny anymore. I’m basically living pay check to pay check. Every time you go to the grocery store you get less and less for your money.

  3. Anonymous says:

    Govt. Need to stop their civil servants from going to the shops and eating at 9 am, instead of being at work, check the Brac where everything goes and no one is held accountable. Three people is hired to do one person job and they are still complaining and doing very little.

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  4. Anonymous says:

    This too shall pass. Wait till CIG gets it’s next bill from CAL, CHA, Turtle Farm and don’t forget the new cruise port we have to have. And we still don’t have the final tab for the airport expansion. At least could we get the ticketing machines at the airport to take credit cards?

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  5. Kman says:

    Now use it wisely by building a mental health facility, vocational & business schools, retirement centres, parks/recreational and creating a Sovereign fund. Deprive your people to fill your pockets can’t be the ideology.

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  6. Rick says:

    There is no such thing as a budget surplus, only overtaxing.

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  7. Anonymous says:

    Maybe WORC can start looking at applying the immigration regulations instead of merely streamlining the process for employers to abuse.

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  8. Anonymous says:

    Many hide their money here that exceeds the amount of 1 billion.
    A whopping 830 million. ? Maybe time to give something back ? Roads, schools, healtcare, public transportation, social security, income tax, property tax…..
    Sorry, this is nothing to be proud of if you let people live in poverty.

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    • Anonymous says:

      7.30pm The $830million refers to revenue collected. To find amounts spent on healthcare,schools etc you need to look at the expenditure figues.

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    • Anonymous says:

      We not living in porverty?? We have NAU. Them losers handing out money like crazy to deadbeat caymanians. And yes i am caymanian. Born and bred.seniors that need cant get. Young girls with five children and a foreign husband no problem!!

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  9. Say it like it is. says:

    I am confused by the Minister’s reference to being grateful to “the Civil Service for their contributions and their work to save Government money. They don’t contribute to their health care costs and they certainly don’t work enough to justify their salaries.
    The increase in revenue is a windfall due to economic circumstances, which is why it was underestimated, and has nothing to do with astute management on Government’s behalf.

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    • Anonymous says:

      7;29 pm, you are right, if civic servants had work ethics like the older civic servants had, being on time, staying at their job and working hard, then they could say that they saved the Govt. money, today three people are hired to do one person job, most of the time they won’t even answer the phone.

  10. Anonymous says:

    so now we have some money to help the people that are dying at this very moment because of greedy insurance companies.

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  11. Anonymous says:

    At least civil servants should answer the phone, which most of the times they don’t bother.

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  12. Anonymous says:

    ppm = poor people money! but the alterantive not any better…they all fulla s……t

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  13. Anonymous says:

    All this while paying down the Govt debt and no new loans.Good job National Unity Government.Next it’s time to tackle the high cost of electricity and fuel.

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  14. Anonymous says:

    Never been a better time to pay down on debts…

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  15. Anonymous says:

    Creative accounting.

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  16. Anonymous says:

    World Class Government combined with a World Class Civil Service equals World Class fiscal management. This is the reason I voted for the PPM.

    Cayman is now the envy of the world !!

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  17. kbb says:

    So pay off the debt that hangs over us. Do not dig a deeper hole. How about addressing the Pension issue while you are at it?

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  18. Anonymous says:

    We must never be in a position again in which we have cuts to government employees salaries due the failure to make provision in rainy day accounts. There is also a commonsensical approach to debt in paying it down in the good times!

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  19. Jotnar says:

    “As always, we are grateful to the civil service for their contributions and their work to save government money.” Actually, the operating expenses of the government went UP by nearly $10 million or 6% over last year same period, and the contribution from public entities went DOWN by 40% despite government injecting $29.6 million, $1.8 million more than budgeted (although I guess we should be grateful its a positive number rather than a complete drain).

    The Minister is conveniently comparing to budget rather than year on year to disguise the fact this is all about taxes, not government fiscal prudence.

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  20. Ron Ebanks says:

    If it is overflowing why are they trying to use other people money , or is the coffer is very small and don’t take much money to make it overflow .

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  21. J|) says:

    Society flourishes when old men plant trees whose shade they will never sit under.

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  22. Anonymous says:

    communism…govt go rotten rich..people go rotten poor!😈

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