PPM doubts PACT will achieve budget cut
(CNS): Cutting almost $50 million in spending over the last four months of the year is a huge task, Opposition Leader Roy McTaggart has said following news that Premier Wayne Panton is seeking an 8.5% reduction in the budget for the remainder of this year. In his latest video message, McTaggart said the need to cut spending is because the Cayman Islands Government is now unlikely to meet its revised revenue target.
Taking aim at the PACT Government, McTaggart said that to make the cuts, the CIG would need to “show an unusual unity of purpose and collective restraint”. He said that Panton, who is returning to office following a short vacation, must be “prepared to roll up his shirt sleeves to bring his ministers together and make the hard decisions”.
The opposition leader said a more fundamental review of government spending and budget plans would be required, and the premier, as finance minister, must be prepared to challenge his colleagues’ spending plans so that he can resolve his immediate problem with the 2023 finances before he brings the 2024/2025 budget to parliament later this year.
McTaggart, who was the PPM’s finance minister in the last administration, said the next budget must be based on a firm understanding of the current financial picture and a realistic assessment of Cayman’s future economic and financial prospects. He said the recently released unaudited results and Panton’s announcement about the need for spending cuts “raise serious questions”.
The premier has denied that his recent memo to the civil service requesting spending cuts was particularly unusual or any indication that the public finances are in trouble. He told CNS recently that this is exactly what the minister of finance should be doing to ensure that spending is properly managed and controlled.
According to the CIG’s latest figures, it had overspent during the first half of the year by around CI$15 million, and the premier is keen to rein that back in and cut upcoming spending. In a statement released last week, he said it was about strong, proactive fiscal management.
“Positive financial outcomes should not simply be left to chance; they need to be carefully planned and managed and even more so with an organisation as large as a government,” Panton said. “Issuing the memo was the responsible action to take and guidance memos are hardly unusual in government. The $977 million target sought for Operating Expenditures for the 2023 financial year is realistic and reasonable, considering that such expenditures totalled approximately $970 million in 2022.”
However, McTaggart suggested that the problem lies with the failure of the government to collect the additional revenue that Panton had announced it would back in April. “The six-month financials indicate that at the half year, with a majority of government income already banked, only $27 million in extra revenue has been received,” he said.
This means the CIG needs to collect an extra $32 million over the next four months to meet the revised revenue target, which McTaggart said the government was unlikely to manage. “With more than half of the expected revenue already collected this year… that is a tall ask when revenues are at their lowest during the second half of the year,” he said.
The opposition leader said the premier must know that the income targets are in danger of being missed, which has made him focus on the level of government spending. He suggested that the risk of government failing to generate sufficient revenue was the reason the premier was now concerned with spending and asking for the nearly $50 million cut over the remainder of the year.
“Ministers must now exercise the restraint being asked of them by Premier Panton. The government must avoid any deficit risk or falling afoul of the Framework for Fiscal Responsibility. The government’s latest figures suggest that growth in a key part of the economy is slowing,” McTaggart said, referring to the construction sector. He claimed that the Progressives had “warned for months of an apparent slowdown in the sector”.
However, some see a downside in the construction boom as it has resulted in runaway development that has made many Caymanians feel left behind, with little to no chance of property ownership, while leading to an increase in the population that has caused a number of socioeconomic problems.
While construction accounts for some 15% of the domestic economy, it does not employ the number of Caymanians it once did. Wages in the sector have dropped dramatically since the post-Ivan building boom due to a huge influx of overseas labour.
However, the PPM has made no secret of its support for development and construction, and the opposition leader implied that the sector is now in trouble, adding to the government’s financial woes.
“We have repeatedly warned the government of the need to prioritise their spending. We have said that every minister will not be able to get everything they want to see done. The premier typically ignored our pleas and put it down to politicking on our part,” he said.
But the opposition has also been calling on the government to spend more and forfeit revenue, despite their claims of being an experienced former government that had resolved the country’s public finance problems and steered it through the pandemic.
McTaggart has issued several public statements calling on the CIG to increase the monthly benefit payments to the elderly, veterans, disabled and long-term indigent. Meanwhile, David Wight MP has called on the government to implement his private member’s motion, which passed in parliament in June 2022, calling for the zero-duty cap for first-time Caymanian home buyers to be extended for properties valued up to $500,000 and reductions for all other local property buyers.
Last year, McTaggart also called on the CIG to give the surplus back to the people. In his statement this week, he claimed the opposition has consistently argued for spending to be on Caymanians facing the cost-of-living crisis while PACT was spending on “pet projects”.
“Ministers seem more concerned about pursuing their pet projects. That must stop,” he said as he called for restraint and responsibility as ministers draw up their new budget plans.
See the opposition leader’s statement below:
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Category: Government Finance, Politics
I just wish one party would quit slagging off the other constantly and actually put the country and its people first instead of trying to get a seat and money then do nothing. Sheesh
It would be nice if you had real parties that had actual platforms and definite objectives. What you have reminds me of student government back in school, only not as honest.
And less eloquence ..
This coming from the PPM who spent 200 Million on a high school that was budgeted to cost half of that and unable to build the other one because they had spent so much on the first one..
People please understand that this is the same old PPM. Political Posturing is their only playbook. They never change and I would rather vote for broomsticks next time then to ever have them in control of our Government ever again..
Does this mean that they are going to reverse their decision of giving Marriott $20 million dollars, to bring back their beach? Or, are they not going to honor the concessions on the import duties, for the multi millionaire developers? Just these two areas, would cut their deficit tremendously!! But I am sure that it will be us, the people who suffer as usual!! So much that this government was for the people!! How about concessions on the stamp duty for land purchases for locals? At least give us a break on that, then it will be easier to acquire property. Think about us Mr. Premier, we are the locals of these islands, are we not?
Reverse the decision to proceed with a $100,000,000.(hundred million) PRISON..
Are you out of your mind UDPact…?
Just the millions in foreign consultants fees would benefit many needs in Cayman…smh.
This is one of those expenditures that will be ignored, until the last minute, after millions have been wasted on fees, and only then will public dissent be heard.
Stop this ridiculous expenditure now Wayne.
Is Wayne asking the Civil Service to give up their Christmas parties?
…and fireworks shows?
And travel trips that can be done via Zoom?
Hiring freeze?
Are they going to stop the Hundred million dollar expenditure for a new prison..?
The consultant has had fees ( millions,) approved.
Stop it now Wayne.
Memo to PPM: It isn’t necessary for you to put out a knee-jerk negative response to every single PACT initiative. That’s American-style politics at its worst — and just look at what a train wreck America’s governance is these days. Further, this particular initiative — reducing government spending — is an extremely good thing for our country. (Just look at the horrendous debt debacle that America is trapped in, a teachable moment if ever there was one.) Or is your endless negativity the result of a desire to seize power for PPM at any cost and at the earliest opportunity?
I’m with you OP (8:47) 💯%.
Imagine 🤔, if the PPM, rallied and instead came out and said “we fully support this initiative, and how can we be part of the solution in helping achieve this for the betterment of our nation?”
There are two years until the next election.
There are no laws or policies that would have to change, only their will.
The members of the PPM could wake up tomorrow and CHOOSE to act differently and be a supportive and anabolic force for change.
How politics is done elsewhere? Doesn’t matter.
How politics has been done in CI in the past? Doesn’t matter.
All that would have to change is for each party member to be able to park their ego, for the betterment of Cayman, on this and many other topics.
Choose wisely PPM and resist divisive politics. Resist the us vs them mentality. Resist being lazy.
PPM want in at any cost because they have paymasters to obey.
PPM always trying their best to remain relevant..Complaining about everything yet had 12 years, to do what they always complain about..let me say that again so that everyone in the back can hear 12 YEARS!!
PACT may not be getting it right or done on time…but they should not be expected to fix everything in 2 years that the PPM couldn’t in 12 years.
NO MORE PPM!
Is Roy even of a sound enough mind anymore to realise the far-reaching implications of his wishes when he kneels down by his bedside each night praying for the Government to fail?
Yes, Roy would burn Cayman to the ground if it meant he could be king of the ashes.
Overseas educated professionals of integrity, are no match for home bred truck drivers it seems.
He will never be king because Sir Alden will seize power as soon as he is eligible to do so and then just push old fuddy duddy to the back. Alden’s ego will never allow anyone else to be in power.
Mac Saunders Seymour and Kenneth supporters avert your gaze..but….
It was an earlier (Dr.) Roy MacTaggart who actually saved Cayman…not only from being burned to the ground, but also being turned into a cesspit, by staying with England when Jamaica went independent.
This Roy has not fallen far from that tree, and Caymanians should be grateful for that.
So much for the 5% COLA that this government had previously promised the civil service.
They could afford it if they froze hiring and cut unproductive employees.
The PACT government’s spending is historic.
I am truly disgusted but did not expect any better from a group of independents that have their own agendas. They continue to ignore inflation, declining construction, job placement versus permits and the list can go on.
They will not find the $50million to cut in the last quarter this fiscal year. The chief officers and senior civil servants need to grow some balls and challenge the stupidity but they won’t cause they need their jobs.
You want cuts to the budget Mr. Premier? How about all elected members and civil servants start contributing to their health care premiums. That will solve your problem overnight. This suggestion caused Marco Archer to lose his seat. He may be short in stature but he had big enough balls then the lot of them combined.
The Premier asking his Government to be fiscally responsible in light of diminishing revenue should be looked at as a sign of good leadership. Was he supposed to just leave things as is and do nothing? This government has spent a fraction of what the PPM spent in any 2 years that they were in charge of the Finances of this country…
You clearly cannot read, they have already outspent the PPM. Plus how is this good leadership? Wayne announced budget cuts and the Caucus approves increased spending on housing while he is on vacation. That sounds like ignored leadership to me!!!!
People like Marco, Alva, Winston, and a few others who got voted out have no business in politics. They are too honest and too geniune. They actually wanted to do some good and not for themselves. The three of them are very educated, and their time in the Parliament was scandal free as they tried to put things in place that would help Caymanians lives to be better. Marco wanted fiscal responsibility and reform, Alva wanted to improve education and opportunities for Caymanians and Winston was the original champion for the environment. But look at the calibre of politicians we put in their place! Cayman doesnt want better, Cayman wants politicians who cater to ignorance give handouts and who have no long term vision. Marco, Alva and Winston I wish you all every success but do not ever consider sacrificing your lives for this selfish country again.
P.S. Add People like Alric, Richard Christian, Michael Myles, Malcolm Eden to that list as potential politicians who would have made a huge difference and compare to what we have now? This country is doomed!!!
Not Alric
Michael Myles? Sure, I’m all in. Very few candidates better in Cayman. Would love to see him and Emily DeCou working in government together.
However, you lost me at Malcolm Eden. The apple rarely falls far from the tree. Until he establishes without doubt that he isn’t like his father, he can go far and stay long.
Johnathan Piercy!
Add Justin Ebanks over Jay Ebanks and Mario Ebanks over McKeeva Bush
Here is an idea. Lets start a petition asking for a new Party made up of:
Marco
Winston
Alva
Alric
Richard
Michael
Malcolm
Justin
Mario
We need some ladies as well. Any suggestions ?
They’re all too honest..
Remember we have a UDP bunch in “pact” clothing.
They’ve kept their UDP ways and low political habits.
$50mln out of a billion plus Annual Budget is actually <5% of an already enormously falsified balance sheet, skewed for over a decade by the PPM’s lead financial manipulator, and reappointed current minister.
The Roads Minister is doing his part. Got his family business helping NRA. It’s all good.
Yes why is the Auditor General silent on this? His family business is doing roadwork, his family runs the district office and gets paid What the heck?????
MLAs giving employment to their family is very traditional. Juju got both her kids working in her office.
Probably the AG is not silent…
More likely she is just ignored.
I believe the word you’re looking for is “complicit.”
Please bring back the LOL button. We need it every day.
I tend to agree with Roy for once. But then again I don’t think PPM could achieve anything of the same.
As has been said before CIG is a bloated ineffective organisation that rewards poor performing managers instead of weeding them out.
How many civil servants are suspended or on required leave? How many civil servants just don’t come to work yet get paid full salaries to sit at home or work their second jobs whilst getting a full time CIG salary?
How many elderly managers and employees still work within government when they should have been retired years ago? We all know these people yet nothing is done. No accountability, no transparency, one big cover up!
Third world is always more expensive. Never less. Get rid of third world politics and thousand will starve. It will happen some day but no one wants to live to see it soon. Pay the money or pay the other way.
PPM is the only true party that can straiten out our problems. Sir Alden is the best Premier we ever had. It will be wonderful once they are back in power. First thing that needs to be stopped in the stupid rich people terminal that those two spend happy persons (Kenny & Rosa) want to blow all the money on.Thank you Honorable McTaggart!
lmao
I would far rather trust Hon Roy McTaggart , as an experienced professional accountant, senior partner of KPMG, and multi generational Caymanian, over some hurry come up book-keeper that UDPact presents to do the numbers dem.
Pretend it’s your money…. Which one them would you choose to protect it..?
The same “Honorable” Roy McTaggart that couldn’t keep track of duty exemptions because they gave so many away during his tenure? No, thank you. None of our current options are worthwhile, Alden’s senile handpuppet included.
The PPM engineered much of the political corruption, Cayman’s originating debt, the false accounting, and the enabled unaccountability. Voters need to recalibrate and direct who can be eligible to speak like Roy is doing. Banning convicted criminals might be a start.
are you a real person? nobody actually talks like this.
Frankenstein Tonto GPT
@4:01PM
I want some of what you are smoking! That has to be some good $hit!
The deck of cards is close to falling down. no fan of Ray or Sir Aldean but realistically the money train is slowly grinding to a halt, and the concept of austerity could become a reality fairly soon. welcome to the real world cig.
so what would you do ppm…or what did you do when in power?
how many miller shaw or e&y recommendations did you implement?
The ppm showed over the two last terms that they could properly manage government finances and grow the economy.
At no point over the last 8 years did Alden need to send out a memo like Wayne did.
PACT and Panton started in chaos and has governed in chaos. With two years to go. God help us.
How many unqualified audited government accounts did the PPM get while in Government?
None
The PPM left government in an absolute mess, remember those expensive overseas offices for their friends, millions wasted.
Signing deal with DART for dump just before being kicked out.
This was either done either purposely, or negligently, either should show they cannot be trusted in Government again.
Such hypocrisy coming from McTaggart
lmao properly manage government finances? Ask them to show us how much they gave away in duty concessions. We’ll wait for the report.
Don’t worry – Kenny, Jay & Jon-Jon will save us!
Better not forget Ju-Ju from the Brac!
They are both former PPM members so i see why you have faith in them..me not so much!
PPM really thinks that everyone just forgets about their record..They have to understand that everyone sees right through their crap now..
Roy is totally useless.That whole PPM group needs to go away like the UDP did…for good!
You think PACT is any better?
Yes. Easy decision. Even if the only consideration is PPM rushing to sign the then deal (with no details, seriously, wtf?) and PACT actually taking the time to ensure it benefits Caymanians (instead of indebting our grandchildren to Dart) – yes, I think PACT is a better choice than PPM. Add to that the fact that PPM gave away so many duty concessions to ultra-wealthy developers that couldn’t even keep track?
Or their attempt to deny us a referendum on the cruise port even though we met all the legal requirements?
Is this a serious question?
PPM is the reason we are in this shit show. PPM has and always will be the WORST political group for Cayman. They have all this mouth now but couldn’t do anything when they had the chance too. Please it’s time for all PPM members to retire and stay home. Nobody wants them in power hence why they didn’t get voted back in.
its all nonsense from do-nothing-pp and no-plan-pact.
neither have brought in any major economic policy or proposal to reduce spending or increase revenue….
the cayman island economy is a house of cards that is about to collapse due uncontrolled spending. slow down in construction or financial services will cripple the cayman economy….as both recent governments have wasted billions with nothing to show for it.
anon 344 and our other choice is who?
the people tried to run to independents and has not worked. the government is being held together with cobwebs
direct rule for 2 years while a new raft of political candidates are selected/vetted based on qualifications, experience and integrity. then we have new elections.
time for class action lawsuit against the incompetence of the civil service and cig.
lmao go home, colonizer.
Why so you can keep milking the taxpayers to line your own pockets? Bring in the British and squash the cockroaches!
Milking the taxpayers? 😂 Who exactly are the taxpayers that anyone is milking here in Cayman? Are you sure you’re on the right website?
We only need a small storm here and then we will find out who the real cockroaches are – British or otherwise – as the vast majority scurry back home to the motherland at the first sight of a threat.