CIG collects record-breaking CI$1 billion in revenue
(CNS): The Cayman Islands Government collected over one billion dollars in fees and revenue last year for a record-breaking budget. According to the 2022 unaudited financial results, the year ended with a central government surplus of $47.7 million after earning CI$80 million more than it had projected in the original budget. Overall, despite high levels of public spending, the Entire Public Sector ended the year in the black and not, as feared, in the red.
Total operating revenues of core government were CI$1.02 billion, but expenses, financing and other costs came to $973.5 million, an increase in public spending on the original budget for central government of $52 million. But that was still $5 million less than the government spent in 2021.
Premier Wayne Panton, who took over as minister of finance after he fired Chris Saunders last month, said he was pleased to have ended 2022 with an overall public sector surplus of $26.6 million. After the statutory authorities and government companies’ deficit was taken into account, the $15.8 million hole that had been anticipated was filled with the additional core government surplus.
“The 2022 Revenues for Central Government were $80.3 million better than budget and an improvement of $159.2 million, or approximately 18.5% more than pre-COVID 2019,” Panton said, as the results for last year were made public. “This is the culmination of the overall trend for 2022 of better-than-expected revenues each month, and particularly demonstrates ongoing confidence in our financial services sector and the post-COVID recovery of our economy,” he added.
But the premier said the government recognised there were still challenges to overcome, especially over the ever-increasing cost of living, rising interest rates and fluctuating global economic trends.
“The silver lining in all of this is that our higher than expected revenues and surpluses for 2022 will help us to maintain a positive financial position in the face of both local and international financial pressures,” Panton said. “The results also clearly demonstrate that the Cayman Islands remains an attractive jurisdiction for inward investment, as well as maintaining local economic growth. The government’s aim for 2023 and 2024 is to build on this solid foundation as we also seek to relieve some of the economic stresses on Caymanian families.”
Around 95% of government earnings came from coercive revenue, and throughout the year fees from financial services, work permits and property duty all contributed most to the higher-than-anticipated revenues collected.
The financial services sector continues to generate the bulk of government money when work permit costs as well as direct fees are taken into account. CIMA alone collected CI$6.2 million more than expected.
Work permit revenue in total was over CI$111 million, some CI$21.3 million more than projected, as a result of the increase in demand for workers in the wake of the COVID pandemic and the full re-opening of the borders. Compared to actual results for 2021, fees collected in 2022 were CI$14.5 million more, a near 15% increase year on year.
Although property taxes were higher than had been budgeted, revenues were more than 10% down on the previous year as the real estate sector begins to cool slightly after unprecedented and unsustainable price increases.
As is the case almost every year, the public purse was hit by an increase in healthcare spending. The variance between actual and budgeted expenses included $30.7 million for tertiary healthcare costs and $2.9 million more on health insurance for civil service pensioners. There was also a $14.8 million adverse variance with respect to the Health Services Authority due to the cost of supplies and other items to combat COVID-19. Actual costs for the care of indigents were $9 million more than anticipated.
The ex gratia tourism stipend was also $16.4 million over budget and the electrical assistance programme cost the public purse $7.9 million, which was not counted in the original 2022 spending plan.
Parliament previously approved, via section 12 of the Public Management and Finance Act (2020 Revision), an additional $15.8 million in funding for the health ministry to cover the increased costs as well as supplementary funding of $16.5 million for the tourism stipend. The electricity assistance programme was an expenditure introduced in July 2022 with approved funding of $8.5 million.
The overruns in these areas were somewhat offset by underspending in other areas, including public sector personnel costs, which were $28.5 million less than expected. Supplies and consumables were also down by $3.6 million.
As of 31 December 2022, the government had CI$2 billion of net assets and over $351.3 million in the banks. US Government Treasury Notes, which will mature in June 2023, were held at their purchase price of US$333.6 million.
See the extract from the unaudited 2022 accounts below. CNS has also requested the full financial report and we are awaiting a response.
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Category: Government Finance, Politics
It would be good to know how much of that $1b was from CUC? Smokes and mirrors!
Over a billion dollars yet Cayman’s government, past and present and possible the future one(s), continue to out price these islands we call home.
However, the question is for how much longer. Too many of us are suffering and it is starting to take a toll on our physical, mental, financial, emotional and even spiritual health.
Look at what is happening in Hawaii as a comparison.
1. https://www.youtube.com/watch?v=WZvKsfcmO0M
2. https://www.youtube.com/watch?v=NO83K8s8dnk
3. https://www.youtube.com/watch?v=NO83K8s8dnk
I can’t help to feel sorry for the younger generation and those to come. Will they be able to live in their own country as the rich continue to get richer and the poor citizens get poorer?
A functional landfill and glass crusher would be cool
The bill that was passed wasn’t it suppose to help the Indigent and the seaman and Minimum wage was supposed to go up they are doing nothing to help the people .. the poor is getting poorer and the government is getting richer 🥲🥲
Well i can hardly wait to hear how they will spend all of this when the SPS is presented by the PACT – with a lawyer at the help of the finances. So far they can’t agree on anything and that shows prominently in their track record so far. Can anyone tell me one thing the PACT has accomplished in their 2 years in power? Other than paving every last road in East End of course. I will wager a bet that every last cent will be spent – Wayne of course will need to concede to each of their demands to keep the PACT together as it dangles by a thread. Pay attention people – when they house meets in 2 weeks you will learn what the PACT’s spending policy will be for their last 2 years ( and I mean last ) because the people of this country have learned a hard lesson about electing a bunch of independents with no experience, each with a different plan to make themselves look good and get re-elected, and no concern for the future of this country. Wayne – you got your wish, you have the power and look how that turned out. Shameful!
Give the money to the people. It’s their money.
Communism? Sure, that works really well. Just look at Venezuela and Cuba. 😂
Say you have no knowledge of history without saying you have no knowledge of history!
No. They increased duties and fees so much to cover hard times over the years and they could “give back” by reducing them again, help us all with this cost of living crisis.
How is giving the people back their money communist?
Commies believe in total government control which is happening here unless the voters elect politicians who believe in limited government and will reduce CIG headcount and expenditures.
Here it is come and join Club CIG where you can’t get fired and you are expected to run two or more government subsidized side hustles.
We need some of the money from the Port Authority to be used to keep the asphalt cleaned. Maybe the truck that we hardly see that can brush and sweep debris like sand and pebbles from passing Northwesters. I have been told that they can’t use water pressure to blow dirt back into the sea. That is understandable, but it still needs cleaning. I’m sure the staff will be able to do it, if they are paid extra after 44 hours of their work week. But there are other tourist attraction sites that need work in the Eastern district like the old guardhouse. Just look around and you will see them for yourself. The Botanical gardens can increase their profits by buying a long golf cart that could hold 10-15 people to see the park. A longer one to hold larger groups especially older people who would go if it was available. There are many things we could offer to increase profits in hotel or cruise tourism.
Thank you, DMiller
This post illustrates the mentality of most Cayman politicians. Hurry up new blood with two brain cells to rub together. We need someone we can put faith in and vote for.
Unfortunately the ever expanding expense line needs constant feeding. It’s appropriate to celebrate the $1bln threshold but that now requires the same or more must be achieved year after year. Regardless of income CIG will spend it all with expense out of control and value not even being considered.
Who would dare run their household at 97% debt to earnings ratio?! As a rule of thumb your debt to earning should be no higher that ~60% of earnings. don’t let the big numbers fool you.
Well said! This is like earning 200k a year with mortgage payments of 16k a month. If your income drops or your mortgage goes up you’re done!
and remember our gov leaders legislated for salary increases lololol it’s such a catastrophe you gotta laugh to stop from crying
cayman Brac W A can’t even suppy its people with water.
Gov makes a fortune…overpays employees…creates unnecessary jobs…where does the cash come from??
Duty on groceries at 22% with inflation through the roof…maybe cut the duty? If you’re running a surplus government decisions become a lot easier then when running a deficit.
Cut the duty, enact rent controls, and reign in CUC NOW
There are very few subjects economists agree on but the fact that rent controls are generally counter productive is one of them.
“the best way to destroy a city, other than bombing.” – Assar Lindbeck
https://www.bloomberg.com/opinion/articles/2018-01-18/yup-rent-control-does-more-harm-than-good
https://www.washingtonpost.com/opinions/2019/06/15/comeback-rent-control-just-time-make-housing-shortages-worse/
As for CUC well, surprisingly, our prices aren’t that high; they’re a lot less than similar islands like USVI and less than or comparable to most of Europe. Given that we don’t have the economy of scale of those places I’m not sure what there is to “reign in”.
https://www.globalpetrolprices.com/electricity_prices/
Cut the duty? Yes, good idea. This is by far the best way to put money back in the pockets of those less well off due to it’s regressive nature, especially duty on food and children’s goods. (To be fair to PACT I think they already cut duty on lots of baby and medical products)
Downvote if you have a 3rd grade understanding of economics LOL
Or if you have an understanding that the ultra-wealthy that own WaPo and Bloomberg are also landlords that want to ensure they can continue to maximize profits unbothered by legislation. Spread your propaganda though
If you had the slightest clue what you were talking about you’d know that academic economists are generally left leaning as a profession, certainly by US standards. Irrespective of that rent controls are a classic case study and one that economists on the left and the right agree don’t work. Who needs experts though eh? Clearly you know better cos rich people.
Alarming that out of 1 billion earned 973 million spent. When businesses do well and banks they put away surpluses as nothing is certain. The economic swing will come and there will be no reserves to pull from.
The treasury note for $333 million was from the $500 million operating line. Rather than cancelling the loan Saunders drew the remaining balance down and placed it on a note to earn interest while we pay interest on the $500 million.
That was stupid but calculated so that when the note comes due in June they will use it to fund their re-election vote buying and the country will struggle to pay the $500 million back just so they can try to stay in power.
The last 2 ppm led governments paid down the country’s debts plus had surpluses. This government is spending unwisely.
Meanwhile the cost of living has noy been conttolled.
This govt campaigned against over development but they are increasing development to fill govt coffers.
Seniors be prepared to live off less and have multiple generations living under your roof as the financial storm will become a hurricane if thses clowns arent voted out.
Hon. Juliana is the abdolute best at spending other people’s money.
She and other career politicians need to go..
Start from scratch.
CIG should cut spending by 50% and just cut $10,000 checks to Caymanians for being Caymanian.
We already cut $50,000+ checks to thousands of civil servants for being Caymanian!
#WorldClass
“The Cayman Islands Government collected over one billion dollars in fees and revenue last year for a record-breaking budget.”
As a polite suggestion and gentle reminder, there is still not an extant Cayman Sovereign Wealth Fund, which is long overdue to be established for the socio-economic beneficial health and well-being of present and future generations of Caymanians and people (including residents) of the Cayman Islands: s.18(1), Bill of Rights (taken together in conjunction with ss.1(2)(a), 15, 16(4)(b), 17-18, 19(1), 24, BoR).
If budget allows CIG to get, at the very least, a modest start at initiating a Cayman Sovereign Wealth Fund, it is one step in the right direction and (if so) would be on the right side of history for doing so — getting momentum moving in this direction is needed and would be greatly beneficial (especially on a socio-economic basis).
My two cents, for what it’s worth.
In the 1990s an Environmental Protection Fund was established from a component of departure taxes. It grew to over $300 mln before PPM started dipping into it for other purposes. That regime refused to enact the National Conservation Law, in large part, to prevent the transfer of custody to the National Conservation Council from the LA (but really just PPM private Caucus). In 2020 the Compass reported there was less than $60mln remaining and the 2013 NCL still wasn’t passed. Now, it’s 10 years since NCL was drafted.
Why does this smell so much like misappropriation of public funds?
Where’s the documentation on these “other purposes”?
Auditor General care to have a look on the people’s behalf?
Because it was misappropriated (we can all remember it) and the practice still continues.
Ooohh, like they misappropriated our private pensions? Gotcha!
A fund is never of any benefit to “present… generations” until it has reached a size decades after its founding that it’s income dwarfs it’s outgoings. Given that it’s funding comes out of current spending/surplus, in fact, it’s the opposite in the growth phase. Short term pain for long term gain isn’t much of a vote winner . Great idea, 30 years too late but still worth doing given our current bumper income. Sadly will never happen. Should be putting away at least 10% a year for the next 20 years.
“Society grows great when old.men plant trees whose shade they shall never sit”
lovely pearl of wisdom that!
Congrats, and a world class education system to show for it…….
Yes, the world class education system is shy they are patting themselves on the back for not actually having a billion dollar surplus.
Hon. Juliana spends too much money on education and gets poor results.
She/they are not accountable. Where is the value for money spent?
Rigged OES Inspections giving government schools high marks while trying to bury the fact that the grafuates are duncey.
She and her henchwomen must resign or be demoted immediately. Enough is enough.
If the government is getting richer and the people are getting poorer then I’m not sure these are records to be celebrating.
If we are making record revenue then that should directly benefit the people!
When will the weather radar be repaired?
Mid storm season
They don’t know how to fix it very much like the dump problem.
That’s great news Wayne ! – we’ll take your word for it considering as of mid March this year the ‘finance ministry has not posted any of its annual reports on its website since 2019,’ 💸💸💸
https://caymannewsservice.com/2023/03/chief-officers-failing-on-transparency-says-oag/
And they can’t buy every district a glass crusher, 🤔. Something’s not right Mr. Premier. It doesn’t take a rocket scientist to implement district waste drop off depots for recyclables. Glass is the only waste that makes economic sense to RECYCLE ON GRAND CAYMAN! Is that loud enough for you?
On another note, I dare bet we’ll be in the midst of the next election campaign and be wondering where all the money went with not much critical infrastructure to show for it. But what am I rambling about, Mr. Premier we probably won’t see you for dust by then eh?
Voodoo accounting. The surplus is in the mind.😂
1+1=5; carry the 3!
How long will the surplus last when we pay DART to process our garbage? Throwing money in the trash – literally.
Don’t worry it will be squandered to a deficit by the next election.
Then why the CI infrastructure is worse than in developing countries?
It is not just the ABCENSE of
•21st century waste management system (3Rs)
•public bus transit system
• laws regulating hazardous and radioactive waste
but the STATE of the
• roads in Grand Cayman which are being designed and built by incompetent people with NO expertise whatsoever
• urbanism is still unknown, both word and concept, in the CI
• dilapidated state of the private septic tanks (no articles since 2010-2011: “Solving the sewage system” and”Private sewage systems still under par”). “…the majority still do not meet the legal standard of quality, according to tests run by the Water Authority”(2011)
Beaches are trashed, roadsides are trashed, garbage is everywhere……
Septic systems are not fit for purpose here. The problem is a complete lack of oversight on well drilling. As a result, over the past four decades the freshwater lenses in Grand Cayman have been systematically contaminated with untreated sewage.
Every district used to have access to fresh groundwater which was potable with minor treatment. Now even Cayman’s largest lens in East End is contaminated where development exists.
Even if septic wells were constructed properly the effluent still pollutes and degrades marine life in our coastal waters eventually.
This is a site unseen and a complete dereliction of duty on the part of Water Authority.
Sewer and water systems are decades behind the times and fall further behind with each new development. I would add roads, but those are too obvious.
Unsure of how they call Cayman a first world country because there is literally nothing first world about us.
What’s wrong with the roads? They are generally excellent. It’s just half the drivers who have never taken a real test that are the problem.
…and not a single thing to show for it.
This is damning. How is the government receiving record revenues yet the Cayman people are suffering at the highest levels since, ever? Forget your eso statistics and unemployment reports. What is happening on the ground paints its own picture.. people sleeping in cars, people couchsurfing, people begging for food, people relying on instagram charity to feed their children wtf
As said, theres lies, damned lies, and statistics. You can fool some of the people some of the time but you can never fool all the people all the time.
This country is close to seeing the effects of its policies and mistreatment and maladministration and downright illegal activities at all levels.
The money is real. You have a public sector of 7000 people, mostly Caymanian. That’s half the money gone in salaries and other benefits before we even get started.
“Total # Core Government Employees: 4,000”
https://caymanresident.com/about/caymans-facts-figures
Your guess is as good as mine if that number is accurate.
It’s accurate but it’s just “core employees” and excludes statutory authorities and SAGC’s.
From 2019…
https://caymannewsservice.com/2019/08/public-sector-headcount-increased/
I want a job description for every single government employment position.
That’s our pact government bragging how much we collected but very ambiguous on exactly how and what we spent it on and with very little public debate and secret cabinet meeting I shudder to think knowing who we have elected as ministers. The only thing transparent is the level of corruption we see increasing daily in our public services law enforcement and statutory authorities and elected officials entourages. One billion but honestly Cayman what exactly do we have to show for it ??
It really is amazing how good things can look when looking at only one side of the Balance Sheet. It’s worrying that one side can be heralded with trumpets without considering the other side. Aren’t we supposed to be an island of Accountants? Scary.
Yep. It’s called Single Entry Bookkeeping.
😂
The winds of fortune can change and blow from opposite direction and often does. CIG fumbles from one loose and corrupt 4 year development and social plan to the next. We should have banked billions in surpluses over the period of prosperity from early 1990s, but successive governments find new ways to waste, spend, and steal any of these community gains. There still isn’t even a sidewalk on east side of west bay road in the heart of the hotel tourism zone.
imagine if they implemented any recommendation of miller shaw or e&y reports???
cig has the funds to solve most of cayman problems but they continue to throw money down the drain with the wasteful, incompetent, unproductive civil service.
And the higher you go, the deeper the hand in the cookie jar.
scary tight finances when you consider the booming real estate, construction and financial services sectors. any of these take a hit and we are broke.
current surplus has nothing to do with policies of no-plan-pact or don-nothing-ppm.
the out of control spending by cig on the civil service is the real concern here.
One hopes that the cash surpluses of the current era will be banked and responsibly invested to ensure the prosperity of these islands when the going inevitably gets tougher one day. What we don’t need is for this surplus to be used as an excuse to continue bloating the inefficient civil service and bankrolling further welfare and vote buying initiatives.
CIG took in $1Bln against Budgeted spending of…$1Bln. Doesn’t factor contingent liabilities, unfunded benefits, or catastrophe reserve. We are not ahead by $1Bln.
Credit to the Financial Services (Private) Sector and should read,
“The Cayman Islands Government collected over one billion dollars in fees and revenue last year for a record-breaking budget, despite the Governments weak performance”.
This is good news but it has nothing to do with their policies. It’s because of inflation…hell the $50m surplus is 5% of the 1b in revenue which is less than the inflation rate for the year.
Costs of everything went up…they charge duty on the costs…they get more money.
Government spending is still out of control and wildly irresponsible. Look at the AG reports that say everything is still opaque and unclear and wrong.
This “surplus” is just a mask.
So if we have a surplus can we now by a glass crusher to ease the burden on the dump or do we need to have a bake sale instead?🤡🤡🤡
One billion in revenue collected but still no plans for the establishment of A Sovereign Wealth Fund or some other vehicle for a national reserves.
It seems to me that the Cayman Islands are at risk of becoming one huge welfare state.
Nice slush fund for buying votes with giveaways.
Roy, you will recall many of us wanted such a fund established in the days of the Jim Bodden governments when the money started flooding in but we were castigated for our “foolishness” by that government. Imagine how much that fund would have had in it today for the inevitable time when it will be needed.
LOL. They can’t even run a garbage dump.
A modest one year Budget surplus they will immediately spend, versus retirement of debt and contingent liabilities (including unfunded pension, healthcare, and misappropriation of Environmental Funds). We don’t have any retained unallocated capital for a sovereign wealth fund. We can’t even pave roads, maintain parks, or paint.
What “welfare”?
Mr Roy,
Cayman is already a huge welfare state. Just look at the amount of people supported by various social service programmes – including your own district.
Plus the payroll running at over $1 million a day