UPM increasing range of fees in 2024/25 budget
(CNS): Premier and Finance Minister Juliana O’Connor-Connolly said her government would increase some taxes or fees over the 2024-25 budget period, such as a rise in duty on electric cars, stamp duty in high-end locations, work permit applications and some General Registry fees. In the Budget Address delivered on Friday afternoon, she outlined an increase in fees over two years of CI$132 million, which she said were non-inflationary and would not impact “the little man”, but the revenue would play a vital role in funding public services. She also revealed new borrowing of $150 million for capital projects.
With around CI$128 million of unused but proposed borrowing carried over from this year, if the government does spend all of these proposed borrowings, it will add about $278 million to its existing debt over this next two-year budget cycle, leaving it with a debt balance at the end of 2025 of about CI$500 million. The premier said that this would deliver a surplus by core (or central) government of around CI$43 million in 2024 and CI$53.2 million in 2025.
Cayman’s biggest budget to date forecasts that core government will collect CI$1.09 billion in revenue in 2024 with expenditures of CI$1.05 billion. In 2025, it is predicting revenue of CI$1.3 billion, with spending expected to reach CI$1.08 billion.
While the government will be spending hundreds of millions on various capital projects, from parks to prisons, in her new role as finance minister, O’Connor-Connolly revealed that personnel costs for government will exceed half a billion dollars next year and a whopping CI$522 million in 2025, as it recruits more mental health staff, border control personnel and regulators for the offshore sector, as well as funding increases in teachers’ pay.
O’Connor-Connolly outlined some of the capital expenditure, but more details of how the government will be spending its record revenue and borrowing are expected to be explained during the course of the budget debate next week. She said that in addition to filling the holes in the debts of operating revenue for government-owned companies such as Cayman Airways and the turtle farm, two new high schools, roads, airport redevelopment, a new prison, the Scranton Park, land acquisition as well as money for affordable housing would be funded.
Despite the size of the budget and the new debt, the premier said that the government would still comply easily in both years with all of the requirements of the public management and finance law.
The government has not yet released the speech, presentation, address or any of the budget-related documents. However, the premier’s Policy Statement and Budget Address, as well as the governor’s Throne Speech, can be seen on CIGTV below (Part 1 and Part 2):
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Category: Government Finance, Politics
CNS – please can you do a story on the status of the Regen dump remediation? I note there is no mention of any capex in this regard in the above. And they have missed their latest hard deadline AGAIN!
These people need to be held to account.
CNS: It’s on Wendy’s list.
Genuinely wild to me that you would increase duty on EVs instead of offering any kind of cash rebates for buying EVs to further incentivise their purchase. You know for the island where clean tropical air is one of it’s selling points, you’d actually make some attempts to conserve that air.
Honestly why is a theocrat managing the finances of the government?
I believe the duty increase is for vehicles valued over $70,000, so accessibly priced EVs will still have no or low duty assessments.
Have you seen how much a new EV costs, when onshore subsidies are not available?
And what matters the price of the EV? It’s still nonsensical to increase duties on it. We should be incentivising citizens to take-up clean practices to perserve what makes this island a tourist destination.
businesses will just pass it onto the little man….ZZZZZ
Raising work permit fees will directly increase the cost of living across the board. Not sure how they think any fees on businesses can be increased without it affecting us all.
Guess the two new petrol stations on the Esterly Tibbetts Highway (Refuel by the Ritz and Rubis at the top in West Bay) and the 4 Way Stop station in West Bay knew something we all didn’t, and here is it in plain sight. I cannot think of any other reasonable explanation as to why you would increase the duty on EV’s then on internal combustion engines. It makes no sense whatsoever. Someone, again, is demanding they get paid, or is getting paid to make this happen.
Backassward corrupt as f#$k politricking. In the USA you get a tax credit of up to $7500 if you purchase and EV. In Canada the Government will straight up pay us to $5000 towards your purchase of a new EV. Cayman was on the right track with 0% duty on EV’s. If you are going to increase the duty on the import of any vehicle it should be one with every single one of the devastating to our environment earth polluting gas and diesel guzzler that is imported to these islands. Leave the effing EV’s alone.
The EVs we charge using diesel generated energy from our benevolent CUC??!!!
Well we are all screwed now.
If the government is wanting to raise more revenue they should make price fixing (of commissions) by CIREBA illegal. That would increase the number of property transactions and government revenue from stamp duty. Prices have moved up too much to justify 4%-7.5% commissions. It is pure madness….
Current state of affairs:
Non-Caymanian (Person A) buys a home for 500,000 KYD and pays 7.5% stamp. (37,500)
Person A decides to sell home but has to pay 7.5% in commissions to a CIREBA realtor. (Another 37,500)
Just to break even the person has to sell for KYD 575,000. So as a result person A holds onto property for longer in hope of price appreciation.
This happens frequently and contributes to home unaffordability (and lack of housing availability ) for most.
Hope the govt puts an end to CIREBA’s anti competitive policies and gives non-CIREBA realtors access to the MLS system. Though I won’t hold my breath….
You dont have to use a CIREBA realtor. And you can advertise and try to sell on your own.
That’s not the point – they price fix and it should be allowed
yes you can do that, but CIREBA makes sure that all the buyers believe they need CIREBA agents. They also make sure the MLS system is only available to their ilk and generally speaking they engage in price fixing behavior. It’s based off the US system which is facing major legal challenges in the US currently (finally). Those changes should trickle down here.
“Try” and sell on your own. The entire listing system uses CIREBA…. The answer to price fixing is not saying don’t use CIREBA, the answer is letting realtors get paid a fair market rate as in virtually every other country in earth so people can actually afford property here.
“You can sell privately”…. Good luck. No viewings or showings as no access to the viewing system or referrals
If ever there was a blatant case of price fixing it is with CIREBA.
Hopefully, in the U.S., real estate agents are going to be blown out of the water next year. To the benefit of the American people and the free market.
The CIREBA Cartel needs to end. Higher commissions than anywhere else in the world based on this article…
https://www.dailymail.co.uk/yourmoney/housing-market/article-12801541/high-realtor-commissions-broker-fees-real-estate.html
you CAN sell privately and not use CIREBA. I purchased my home privately.
8:17, Thanks real estate agent. 😂
Most of the people purchasing homes privately are realtors who snap up deals before anyone else even knows about them. So that is a non-starter.
Public school in Cayman is just a day care for teenagers. Big waste of money to build new school… Will still get the same failing results they’re getting now.
And mainly a mandatory sunday school.
Keeping them uneducated is the only goal.
https://www.gov.ky/news/press-release-details/budget-policy-statement-by-the-premier-of-the-cayman-islands-8-december-2023
https://www.gov.ky/finance/publications
CNS, can you ask whether is ISWMS (aka ReGen) is a priority for the new government? It is barely alluded to in the budget speech.
4:29. The gave Regen to Kathy our most inexperienced Minister. God help us.
Ask the staff at the Parliament about her capabilities or lack thereof.
I heard they were doing cartwheels when she resigned. They were so anxious for efficient leadership.
It isn’t. They said that “sustainability is no longer a priority.” Isn’t taxes on electric vehicles proof of that? For Julianna the uneducated masses is all she cares about not that they are educated but that they don’t pay anything and government pay everything for them. Being educated which is not Cayman Brac as the educated leave. She forget that she is the Premier of the Cayman Islands not the Premier of POP a Top. Caymanians have electric cars. At least the educated ones. I do hope that our younger people the educated ones run for government soon.
madness and flys in the face of prudent economic management policies.
just another day in wonderland and the the social welfare state is now closer than ever
Must increase income so she can keep spending our money on whatever her pea brain mind wants.
Please just go back to eating buffets and sweets Premier and STOP WASTING OUR MONEY.
This woman is nuts. Raising fees to cover an overly fancy high school in Cayman Brac.
Don’t forget the new West Bay High School and the Kenny/Rosa private air terminal. Will have to throw in something for Seymour as well.
This will be an unmitigated disaster for our country.
Governor where are you and the PFML?
JuJu will lead this country down the spiral of debt and ruin.
STOP THIS ENDLESS SPENDING NOW!!!!!!!!!!!
economic suicide.
and how many recommendations from miller Shaw or e&y reports have been implemented???
tax, spend, borrow…..
this place is doomed.
Madam Premier, would you care to explain to the public how a rise in fees for public services will NOT affect the “common man” in the long run?
Over……?
This woman is unqualified to be a leader.
All her life, she has taken instructions from people who have not had the best interests of Cayman at heart.
Yet she is rich. Go figure.
Play the Jesus card at yor own peril, Julie, because you will meet Him soon enough.
Who has she taken instructions from ? name and shame !!! Or STFU!!
8:23, Obviously you have not been here very long. JuJu takes her instructions from the same people as McKeeva with a couple of additional people giving instructions from the Brac.
Perhaps you don’t understand that the woman is totally unqualified to lead, just look at the disaster which is our public education system which she has led for a long time. We spend more per capita & per student on education than anywhere else in the world and our educational results are a disgrace.
Whatever happened to Ministerial accountability?
I regret to say we are just not a very bright people. 😭 😿
Keep feeding at the trough 8:23.
I would caution to not raise fees on companies on island that are the “bread and butter” revenue generators on island along with Registry fees increases.
Cayman showed during the pandemic it is basically a one sector economy. If you negatively impact the viability of the banking sector Cayman could implode in spectacular fashion with all that offshore money leaving abruptly. In others words be cautious of not plucking the golden goose. If that occurs then Cayman would become little Jamaica “welcome to Jamrock”.
And let’s not forget how Big Mac tripled their CIMA and WP fees not so many moons ago.
gotta pay for all that vote buying…. Cayman is going to hell. we need an election now.
9:09, And elect who? The political talent pool here is dismal to say the least.
Miss Julie is a dangerous woman and will send this country over the financial cliff. The Brac will get everything but what we need in Grand will be neglected.
Juju seems to have been around Cayman politics forever.
How old is the woman? Can’t find that info or a good biography of her anywhere.
I never understood why electric cars were cheaper to import, when they eventually get scrapped the cost of dealing with the batteries is going to be quite a thing!
The answer is the batteries are valuable and not garbage, even if spent years from now. The ones in our car are factory and dealer warranted for 100,000 miles, with a useful life of 500,000 miles. World might be over by then.
Electric cars are for rich people who don’t have to drive very far. Just whack them with increased import duty . The Crystal Harbour/ Lalique Point residents can afford it.
You can buy an electric vehicle for the cost of a new Honda Civic these days. Ignorance is bliss.
And watch CUC try and cash in on powering the charging terminals that will be needed island wide for electric vehicles to work… instead of using the more sustainable option, solar for free charging.
Batteries can be recycled.
We do not need that level of debt!
It occurs to me that raising taxes, duties and fees in light of our ever-increasing high prices is exactly what Mr. Panton was struggling so hard to avoid. This is why he was espousing tightening of the belts, and conservative spending, because he wanted to not slap the people when they were already down and struggling. *shrugs* Guess that altruism isn’t on the table.
I can’t say this current government is the wrong way. I choose to be hopeful.
Well, that which can’t be changed, must be endured. Me and mine will live through this also. Five things that can’t be taken from you: Your integrity, Your honour, Your spirit, Your faith, and your hope.
ha! can’t make this stuff up, we have record poverty, record cost of living, record suicide rates and our government response is raise fees.
meanwhile they continue to rake in obscene salaries.
Raising taxes on those who work to pay for more benefits for those who don’t usually means less revenue in the long run. The next few years will be great for Caymanian voters and politicians but it all goes downhill from there. This is a normal human run cycle all over the world (not so much in the developed world) and always plays out the same.
she is just mind-blowingly out of touch with reality.
What does the resiliency minister have to say about raising duty on the electric cars we can barely get here as it is?
Work permits fees 200% increased UPM finally making the right moves Stamp duty for foreign folks need to increase by 10 fold lick dem UPM they gots to pay for their jollies right yah so now! Kapow !
Cayman owns mountains of debt and liabilities that won’t be cleared or served when the Finance train leaves the station of Cayman. Our MPs have no plan for paying down that future. Eventually 75% of revenue, that has brought years of spending, crony prosperity, and zero rainy day reserve, will be departing to somewhere kinder, on a one-way ticket. We might be one hurricane away from that. The conductor is already whistling “All aboard” in many quarters, and Cayman’s leadership, via their predictably corrupt policy script, appear to want to hasten that departure at the people’s expense. With budgets like these, tying the people of Cayman to the tracks.
Can we spend some money on accountability? Make the police do thier jobs and other government workers. The port is a mess. Please fix it.
It sickens me to hear that the revived UDP government is proposing everything on their wish list ( aka reelection projects) for every cabinet members constituency. In addition to having already spent the 300 emergency COVID loan that was never meant to be spent for general operational cost – like giving a 1500 bonus to every civil servant, now they are borrowing another 150 million and have an additional 130 in new taxes. So it will take almost another 300 million to balance this outrageous spending. IM sorry bit this country doesn’t need a 50 million dollar school for 151 students. Do us all a favor and privatize education. I sincerely hope that some of these MP who have a education and understand economics (Andre, Wayne, Roy ) have a conscience and VOTE NO to the outrageous spending. The greed and corruption has to stop!!
With interest rates so high is it smart to increase the debt?
Instead of increasing taxes why not try to lower the governments expenses? Seems to me like they waste lots of money.
But they represent lots of votes.
“Increase duty on electric cars” yea this type of logic really na surprisingly coming from a bible thumping dinosaur that has been needing to retire from her politricks for the past decade. Increase why exactly? Electric cars make up like 1 percent of vehicles on the road and don’t be belching black smog. You should increase duty on those unnecessarily big trucks that people commute alone in instead!
Oh, right, she’s a theocratic christian fanatic who doesn’t believe in dinosaurs so she thinks oil is god’s unlimited gift. When the sea levels rise from us raping the environment, I guess she’ll just call Moses (PUN INTENDED) to go part the sea at our shores.
First, they don’t care. All they care about is re election. Second, they realize there is a big chunk of the electorate who don’t under that increasing work permit fees gets translated into higher prices by businesses who won’t absorb the cost. Same issue with increasing stamp on homes in “high end” – areas frequented by financial services expats and rich Caymanians – which don’t immediately affect ordinary Caymanians, but ultimately do since they increase the cost of buying in those areas driving an increase in demand in other non high end areas which, due to restricted supply, drives up prices there too. Non inflationary my a$$. But if you really want to worry about any Hus economic competence look at the idea of borrowing money in order to build non remunerative assets like a high school in certain individuals constituencies, a prison, or fund loss making businesses. Once spent the money is gone. But the debt will remain as will the ongoing interest. But Ju Ju don’t care – she’ll have her name above the school and it will be the next government and the tax payers problem to solve.
… because the “surplus” is not enough pocket money for our whimsical politicians.
“the little man”,
You are neither little nor a man and as a wonan you certainly do not speak on my behalf!
You are disgusting, condescending and do not represent ANY woman! How you like that for freedom of speech, times have changed darlin’ and you are more than prehistoric. Time you ride your dinosaur McKeewa and woodies n get the heck out! Refugee boat available, you are not welcome!
🤣😂
I think you are the worst kind of Caymanian. Tearing down the Premier in such a disrespectful fashion. The woman has family for god sake! There is a right and wrong way to deal with things and you have chosen the wrong. We can disagree respectfully but what you have done is shown the true nature of a Caymanian crab!
HER government..read it well…not our government, not Cayman government
Her bowel movement on the people.
Don’t read any further:
said her government would increase some taxes
Quick eye:
which she said were non-inflationary and would not impact “the little man”, but the revenue would play a vital role in funding public services. She also revealed new borrowing of $150 million for capital projects.
F#%$&^#$^^%%
well the taxes are already going up but the good news is that they are not going to add to inflation. don’t know how she figures that because all costs will be passed on to the consumer but they are the geniuses in charge.
A whole lot of hot air and lack of substance. Eerily reminds me of speeches when the educated genius of WBW was Minister of Finance. And yes, I am being sarcastic about the WBW MP being educated.
So only teachers get an increase in pay? Schools are failing but let’s reward the teachers for more failure, more love fighting, more student bullying, more exorcism.
What about increases for the rest of the civil service?
Have power, will abuse for own purpose and glorification.
This has disaster written all over it
The United People’s Movement will breach the FFR within the next twelve months given their expensive plans. This is a dangerous path for a government full of reckless egomaniacs led by the High Priestess of Watering Place.
Ideas.
Honda Fit tax
Non-indicator usage tax
Use of cross necklaces by politicians tax
Because PACT has been dissolved and the same group of misfits have been rebranded, does that mean that their latest “hard stop deadline” of 30 November 2023 for finalizing the dump remediation plan gets swept under the carpet?
I do not see any mention of the dump in the capital expenditure above?
We shouldn’t want any cig regime to sign a bad deal or blank non deal as tabled by DART. The project should be retendered, but seems unlikely under this corrupt warlock regime.
Hear hear! We need to fix the dump and therefore need to get the ISWMS/ReGen contract signed as soon as possible. CNS, please ask where that is in the priorities – seems like the new government is not shy to spend capital – this is more important than a new school for Cayman Brac.
And there I was, all ready to order myself an electric driveway paver.
If she really thinks that increasing stamp duty in “high end locations” will not drive up prices in other locations and indeed affect the “little man”, she’s dumber than we thought.
juju you cookoo stop taxing us to hell and gone!
If they had an ounce of moral decency they would stop spending our money like they won the lottery, exercise some financial prudence and fiscal responsibility with the public and use surplus to REDUCE and in some cases eliminate fees
Good night money.