Gov’t coffers overflow with budget surplus
(CNS): At the end of the first seven months of 2022, the Entire Public Sector (EPS) had a surplus of $129.6 million, some $25.2 million more than the projected year-to-date operating surplus of $104.4 million, the finance ministry confirmed Monday. As of 31 July, the government was still collecting much more revenue than it had predicted for this year and core government was running a surplus of almost $144 million, even with spending going some $19 million over budget as a result of tertiary healthcare costs of $14 million and an additional $20.6 million on the tourism stipend.
Finance Minister Chris Saunders said the numbers followed the same trend seen in the first half of the financial year, with revenue reflecting the confidence in the financial services sector as well as continued growth in property sales.
“Cayman Islands real estate continues to be a popular investment in tandem with ongoing and new development projects,” Saunders said in a release. “We have also seen growth in work permit revenue over the prior year, which indicates that local businesses are in recovery mode after the suppressive effects of the pandemic, and are now staffing up to their full complements.”
The minister added that import duty and tourism-related fees and taxes were increasing compared to last year. “This is not surprising given the recent phased reopening of our borders. These two sectors have a symbiotic relationship, with higher tourism arrival numbers resulting in increased consumption and therefore increased imports.”
He added, “With the full reopening of our borders and the removal of COVID-related mandates, we anticipate stronger tourism performance in the upcoming traditional high season of November through April. In general, we have seen that the financial over-performance in some areas has thus far more than compensated for under-performance in others and we are still in a strong surplus position.”
The Entire Public Sector surplus of $25.2 million ensured that the government would be in a position to provide the funding for social programmes such as free school meals, stamp-duty waivers for first-time Caymanian home buyers, healthcare costs for elderly Caymanians, and the three-month extension of the tourism stipend due to the emergence of the Omicron variant, he noted.
“All in a time when expenses have inevitably gone up due to the after-effects of the pandemic,” the minister said. “This caution has been rewarded by better than expected revenues, which allow us to provide additional relief to our people due to local cost of living challenges and international inflationary pressures. With continued good stewardship of public funds, we anticipate that the country’s finances will remain in a positive position through the end of this financial year.”
Premier Wayne Panton thanked his elected colleagues for their commitment to keeping government finances on track as well as the civil service, as the figures put the government in a good position to weather the traditionally leaner revenue months of the second half of the year.
“In addition to a healthy surplus, we also have the anticipated tourism high season to add to our revenues from that industry, which is now positioned to rise rapidly to its former levels,” he said but added a note of caution. “While optimistic, we also remain cognizant of global economic pressures and will remain vigilant in our management of government finances while fostering an environment of continued economic recovery and growth.”
The government collected over $7.2 million more than expected in financial services fees and an additional $6.6 million from work permits, representing increasing demand for workers as the economy moved into phase five of the border reopening plan, despite persistent complaints from employers that their permit applications are being declined.
Property-related revenues were a staggering $18.5 million higher than anticipated, as property transactions and high property values continue to fuel an unsustainable property boom that is largely dominated by luxury condo sales.
See the details of the YTD government finances in the CNS Library.
See full press release below:
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Category: Government Finance, Politics
PACT still boasting off of the triumphs of the PPM.
Govt does it every time they switch i.e. 4yrs….its called Politics you dimwit.
Most residents in these Islands don’t eat healthy
As in most other countries
Nothing new here, move
Fat Ministers everywhere, Cayman not exempted
This is not the doing of PACT
They are living off the previous policies of PPM
In 2-3 years time we will be in debt
PACT have no clue, no onward revenue creating policies
They are stifling growth and development
Watch this space
As a hardly working unemployed Caymanian it behooves me to say with all this excess money the government should provide free electronic cars for transportation to save the planet and complimentary weekly vouchers for dining at KFC or Burger King restaurants to help nourish the community. Here here!
9:19 am, you are unemployed because you are lazy and dont want to work. You only want others to work and give you. How you think government gets money?. Its by people working.
Excuse me!?! Your language is offensive. It behooves me to say that your lack of empathy for saving the environment and feeding the community is discombobulating.
Invest it in the underfunded pension funds.
God no.
Sooner or later govt will be forced to make up for the underfunding and making payouts via the NAU so they might as well bolster the funds.
Unfunded
Better to have the Cayman Government invest in a S&P500 index ETF and pay the Cayman citizens dividends every quarter. Those pensions are a middleman con job leeching off it’s prey/pensioners. I imagine the actual fat cat owner of those pension companies living high and dining regularly at the Ritz. #DRAINthePensions
more handouts on the way along with even more wasteful civil service spending
No use to cut duties if its not passed on to the consumers.
It would be comforting for the government books to be audited independently.
Saunders would not like that methinks.
HA HA HA HA….
Aren’t we still waiting on some Govt Depts to produce their 1st ever set of FS?
No, 1:52
What, and open another can of CIFA?😵💫
Repurchase debt with half and use other half in rainy day fund
That should cover the 12 meter long new pedestrian shopping street in George Town 😉
Perhaps they should reduce duties (on everything) to help everyone cope with this awful inflation and cost of living increase.
Obviously the government is collecting way to much revenue for in this type of market.
Wonder why you groceries are through the roof? Cut the damn food duties.
Sadly that’s not going to have the affects people think it will have. The idea that reduced duty on imports will be passed onto the consumer is a myth. It will only result in increased profits for owners and shareholders who will also not pass those profits onto workers. We are a captive market with little to no outside competition and this is the result.
This is Capitalism, best to just accept it.
Most of that is being used to pay civil servants on paid leave while investigations are pending…………
4:13. Poor you. Give credit where it is due. Sad world you live in.
You are out of your mind, and frankly an enemy of Cayman. There is no legitimate basis for several civil servants, some not even Caymanian, being on full pay and benefits MONTHS after being caught committing serious crimes. This callous waste and disregard for public funds is like a cancer, quietly eating away at us (as is our awful and incredibly expensive education system).
Innocent until found guilty in most developed non authoritarian countries, bobo @8:02. It’s an awkward human right, isn’t it? Far better the other way round, nuh true? Unless it happens to you or a family member.
Bullshit. The test is not the criminal test. It is the civil test. Would a prudent employer act reasonably to terminate the employment of the person concerned? In the private sector and almost everywhere on earth, the answer is a resounding yes. The Civil Service feathering its own nest at the expense of the Caymanian people has to end. It is operating in breach of its solemn commitment to these Islands.
8:37, you foo-fool bad.
Prison Officers caught red-handed bringing ganja into prison…still on fully paid leave a year after the fact….how is that even a possible but for our retarded Govt allowing it to continue?
But one example out of hundreds?
You are clearly one of them.
Silly unfair comment 4:13. Agitate to get the legal system to work faster and not delay things for years if it bothers you so much that a tiny number of people are paid until they are able to be heard in court.
So we are to agitate for civil servants to work faster in the expectation that their fellow civil servants be paid less?
And it is not just a couple and the cost to Cayman extends far beyond salary. Pension, Healthcare, Education Expenses, Deprivation of jobs/opportunities for local persons etc. all add up.
The situation is unconscionable. It is representative of maladministration. Within a week a responsible manager would have conducted an reasonable investigation and determined whether the circumstances warranted immediate dismissal – were it the private sector. All in full compliance with Cayman Law.
This is a stain on Cayman. It is inexcusable.
4.13 also paying salaries and expenses of senior overseas appointments, who are still waiting for work permits.
Funny that there is radio silence about all the rogue civil servants arrested on corruption charges. Were they ever prosecuted or are they on garden leave until their pensions kick in? I guess we’ll never know…
With no disrespect. Our MP’s who were elected by our people bragging about our Government coffers overflow with budget surplus and our now civil servants will be given a raise again shortly. Our retired civil servant pensioners should be given a raise on their pension also whenever our civil servants are given a raise their salaries. A one time honorium on September 1st 2022 of CI$450.00 what is that for our pensioners especially those civil servant pensioners who worked their asses off and they are sick, disabled or ready too die and they were avoided did not get any recognition or decent salary from their supervisors, managers, HR’s or Directors when they worked their asses off for our Caynan Islands government. And our same pensioners that reelected and elected our MP’s are Still out there begging, going to bed hungry, cannot afford too pay their bills cost of living killing them just like cancer or worst than cancer. They don’t have a surplus but a defecit and Being denied NAU services without any form of reliable and dependable financial backup. With no disrespect our MP’s must make sure they do or they are doing the right thing with our governnment overflow budget surplus. Because they must remember the same people that put them in our parliament along with others that didn’t even put them there last election in our parliament. can remove them from our parliament in our next election or by a bi-election. That is a little food 4 thought
Use the surplus to continue to buy land around Cayman – greatly needed.
You mean buy back from DART at 10x the price he paid cause that’s all there is to buy?
Be careful of bragging of this surplus…the British pound fell to 1.2393 against the dollar. The UK is bracing for a recession.
Didn’t anyone tell you that the Cayman dollar is pegged to the US dollar? And all of our reserves are in US dollar funds.
Didn’t anyone tell you that in 1971 president Nixon de-coupled gold reserves with currency so more money can be printed and the system now relies on FAITH in the US government which is rapidly deteriorating.
Frankly, money was being printed under Nixon. The USD was not pegged to gold since 1933. The gold price was fixed at $35 per ounce. None was sold there, therefor the peg was meaningless.
Stupid trail of garbage nonsense. Why, why, why would you post this bullsh.t to justify… oh, nothing. It has all been reputed many yers ago, and you are not an expert on monetary policy. Go back to your day job at the deli salad bar.
My job is actually as an economist. What’s yours?
Dollar strength kinda puts your argument to shame.
Not really, because you are thinking of the present time as the USD global reserve currency, but this is in real danger of collapse. We have a perfect storm brewing with the effects of a pandemic and millions of dollars being printed to sustain the conflict with Russia.
Says the holder of bitcoin.
Bitcoin is far to volatile for any sensible investor.
https://www.msn.com/en-us/news/world/russias-gazprom-signs-gas-deal-with-china-to-convert-payments-to-ruble-yuan/ar-AA11wD9N
Collapse of US dollar is imminent
Exactly. Uninformed idiots who really don’t know what they are typing about are rampant here. Cab drivers really shouldn’t think too hard of international currency.
Pretentious snobbery doesn’t really lend itself to an academic debate either. I would wager that there are probably many cab drivers smarter than you. Climb down from your high horse.
More like 1:1.15. Did you even check before posting?
1.46pm That was weeks ago, it’s now below 1.16.
Why is the gbp relevant to the cayman dollar? Kyd is pegged to the usd. Hopefully it makes the waitrose products in fosters cheaper, but that’s hardly a key economic metric!
1.2393 huh? I love the way you quote it down to the 4th decimal place but in fact got the rate completely wrong… try 1.15
Better get one of the big 4 to fact check that before unscrewing the champagne!
Sovereign wealth fund?
A Sovereign Wealth Fund would be greatly beneficial to secure long-term socio-economic prosperity for the Cayman Islands.
Bo Miller ( RIP) recommended this Mr. Merren but the geniuses we elect did not understand what he was talking about. Maybe this lot might listen.
It was suggested to Jim Bodden many many years before Bo (a sensible man) came up with it 7:27.
You see any Geniuses in this current administration?
Not really. Dwayne “The Brain”, in his own words, is there to “make it worse…work better”. Freudian slip?
Nice in theory, in practice it would be robbed blind.
*rubs hands together*
Give something back to the minimum wage people, who are the ones that suffer the most.
The bottom of society can not increase their rates, like retail and self employed can do.
I hear horrible stories of hunger and illness.
But nobody seems to care in this so called christian country. Nobody.
Not true. Several people care. Regrettably, thus far, nobody with social iron to affect meaningful change, but change is coming, the hard way or not.
Effect
The “minimum wage people” need to vote in better ministers.
Not ones who pay for their new front doors before an election-for their votes, then disappear to pave their pockets with $$$ instead of looking out for their district.
Hunger, illness at the bottom of society?? YES; but who did they vote in? The MacBeater! I have little sympathy.
Don’t spend it on frivolous programmes, keep most for rainy days. Those are certainly coming based on the present world economic issues, e.g. World energy/fuel crisis.
To the Caymanian Woters who think this means we have money to burn: IT DOES NOT.
All this means is that we can pay the next round of bills which is expected of a functioning Govt.
In other words all the fee increases across the private sector have brought in the cash needed to pay loans etc.
Moving on……
And yet the fuel taxes and salary increases remain… all while the locals get $^!&!*$^! – enough said.
Vote them out!
@12:34pm…so you prefer the Government to be broke? If they were delivering a message saying that the had a loss of $25M would that make you feel better..
How does the Government for the private sector to raise salaries? They can’t. If they raise the minimum wage the private sector will just pass that along to the general public..ie, if Foster’s has to pay higher salaries, they pass it on in the cost of goods they sell..So now you are earning a few extra dollars but your groceries cost twice as much..If you have a helper her cost goes up and you have to pay her more because the law dictates it..
The majority of Caymanians at the lower end of the wage scale of $6 an hour are very few..This is mostly for the expat service staff, security guards etc. who live just to send their funds of island so a higher wage just puts more money into their pockets but people like you and I who remain here continue to pay the high prices that are the effect of any increase in minimum wage..
It is unfortunate that we have developed a society dependent on importing low wage expats instead of developing our own people to take these jobs. We have become proud, think menial work is beneath us, and would rather suck of the Government tit than do an honest days work.
11:14 I’m glad someone understands how economics works. so many people scream for higher wages but don’t understand the knock-on effect for everyone.
Missed the pt – am talking civil service salaries
Must be a boat load of new WP fees considering the population increased 10% in 8 months.
In certain instances, intercepting employment and business opportunities instead of Caymanians. We import too much labour. Some needed, but not this much.
Give us a break and stop duty on certain items. Like fresh healthy food at shops!
If only it was fresh though
True…
12.21pm There’s no duty on local mangoes which cost 4 times as much as they sell for in the UK.
But the local mangos are edible mangos. Ornamental mangos like what they sell in the UK, and sometimes here as well, were never intended to be eaten. You are supposed to display them in a bowl at home to impress people.
And you have to buy floss on top of that cause they so damn stringy.
Local Caymanians will not buy ‘fresh healthy food.’ Just take a look at our ministers! A poster for heart disease, diabetes, etc… We elect a disgraceful bunch.