$135M surplus expected to fall to just $16.5M by year-end
(CNS): At the end of September, the Cayman Islands Government was sitting on a whopping surplus of $148.6 million for the entire public sector and CI$135.7 for core government, but officials have confirmed this will likely dwindle to around $16 million by the end of the year.
According to the unaudited third quarter public finance results covering the last nine months, the government collected an additional $52 million over its forecast predictions. However, all of that and more is already spoken for. Finance ministry officials expect the surplus to drop by over CI$119 million by 31 December. Officials told CNS that core government will have a surplus of around $16.5 million by 31 December 2024.
Core government’s 2024 operating revenues are forecast to be $1.098 billion by the year-end, almost $3 million more than the $1.095 billion originally budgeted. Meanwhile, operating expenses are expected to climb to $1.081 billion, almost $31 million more than the $1.050 billion originally budgeted. The CIG had expected a surplus of just under $44.5 million, which is now forecast to be about $16.518 million.
Despite the dramatic expected decline from the position held on 30 September and a drop of some $30 million on the forecast surplus, core government will maintain compliance with the 2024 Principles of Responsible Financial Management, with the Cash Reserves Days at 96.4 days, officials have confirmed.
The third quarter report also documents that from 1 January to 30 September this year, government revenues increased by $67.8 million compared to the same period in 2023, while at the same time, government total core expenses were up $43.3 million.
The revenue came overwhelmingly from the financial services sector. Other Company Fees – Exempt Companies alone added more than CI$112.6 million to the government coffers due to increased registration.
Partnership fees and Private Fund Fees also did far better than forecast, even with a shortfall of $9.5 million in revenue from the sector than had originally been expected because the start date for the new coercive revenue stream for International Tax Cooperation filing fees has been deferred until next year.
Meanwhile, sky-high property prices brought in more stamp duty than expected. Land Transfers brought in $17.9 million more than expected due to higher volumes of property transactions coupled with increasing property values.
The 2024 stamp duties of $68.5 million are $10.8 million more than the comparable quarter in 2023. Miscellaneous Stamp Duty also came in at $5.4 million more than expected and $2.3 million higher when compared to actual results for the same period last year.
However, these whopping revenue raisers were countered somewhat by a decline in what the treasury terms ‘other import duty’, which was down by over $16 million but still on par with 2023 results.
The government also gave up close to CI$6.8 million in duties through waivers and concessions. While most went to Caymanian first-time buyers and buyers of second properties, more than $1.5 million was given away on multi-million dollar developments.
Although government made savings on its personnel bill because of the number of positions that were not filled, it still spent $341 million on government workers, which is around $17.4 million more than the government spent on its headcount in 2023.
Payments to the Health Services Authority (HSA) exceeded the year-to-date budget by $16.6 million. That money was largely due to actual costs for the Care of Indigents, which exceeded the budget by $14.3 million, with the government forced to add $13.5M through Finance Committee.
The government also laid out more than expected, as it does every year, on the notorious budget line item, Tertiary Care at Local and Overseas Institutions. This year, that exceed the woefully inadequate original budget by over $24.5 million. As of 30 September, the bill for this line item was already at $38.5 million but parliament has already approved an additional $34.4 million, increasing the total 2024 Budget to $53 million.
The government’s welfare and scholarships bill also continues to increase. With changes to the legislation, the Department of Financial Assistance has paid out $7.7 million more, helping families in need and over $4 million more than expected on scholarships.
Parliament has approved additional funding of $10.6 million for Financial Assistance to take it to the year’s end and is expected to spend $11.1 million more this year than last helping the unemployed, underemployed and families on low incomes.
Overall, statutory authorities and government companies were reporting a significant operating surplus at the end of September of almost $13 million, a far better result than the expected deficit of over $1 million.
But even as the Cayman Islands Monetary Authority, the Civil Aviation Authority, the National Housing Development Trust, the National Roads Authority and the Port Authority were all doing better than expected, other SAGCs have not been doing so well. The unfavourable performance of Cayman Airways Limited, the Airports Authority and the HSA will mean that the surplus will fall before the year is out.
While officials said the third quarter’s performance has positioned the government to be optimistic during the final quarter of the year, ministries, portfolios, offices and statutory authorities are all expected to make a final push to meet planned 2024 objectives, significantly reducing the surplus.
Download the unaudited results on the government website here.
- Fascinated
- Happy
- Sad
- Angry
- Bored
- Afraid
Category: Government Finance, Politics
Where is the Governor? Why isn’t the business community not upset over this? Chambers of Commerce, where are you? Our country is being ruined day after right before our eyes and no one wants to step in and stop this train from derailing?
Cayman clearly needs a DOGE committee.
Caymanians stop voting for those politicians that are lining their pockets and their faithful followers.
Caymanians stop voting for those politicians that seem to have a never ending supply of money to “donate” to various things in your district. Do you think the money is coming from their salaries??? No from their developer friends.
Caymanians stop voting for the politicians running around fixing parks etc. We need volunteers not more parks.
Caymanians stop voting on politicians that are spending money without any long term vision for this country.
Caymanians stop voting for politicians that are leaving a legacy of debt for our children
Here is something we historically suck at:
When we undergo a capital project, the bids should have performance bonds. We never do that. What that means is if the developer/contractor has cost overruns that didn’t pertain to change orders or undisclosed situations, they developer/contractor has to pay for it, or surrender their bond, which is intended to fund the project to its completion.
Another thing we historically really suck at: When we build something, there should be funding allocated for at least the reasonable life of the structure(s), for maintenance. We don’t do that. What we do is build something, and from that moment on, it begins to degrade without funding for upkeep. We don’t include those funds, because it would increase the cost of the capital project. These funds should be allocated, and set in stone toward the future maintenance, regardless of which administration is governing it. If we can’t include or agree upon the maintenance costs of the project, it shouldn’t be approved. We have SO many projects which are rundown, and the maintenance can keeps getting kicked down the road. “Wasn’t MY project.” Yep. That’s the insight of almost every administration.
p.s. It is ALWAYS significantly more expensive to upgrade than to maintain.
Garbage Trucks is a great example.
We the people will pay for all this. The port fees just doubled.
Well you know, Fireworks are very expensive as are Port Authority stipends as gifts for Mac Kenneth and Saunder’s political appointees.
Buying votes big time.
In my opinion, Ken Jefferson is too meek for that position. Listening to him on the radio (or YouTube), he comes across as a “yes” civil servant. When it comes to the public purse, we need someone with the cojones to stand up to anyone — come hell or high water — and say, “No; that won’t work” but to me, he sounds like he is too scared of confrontation with these bully ministers.
Because he would be sent packing. If he wasn’t a yes man, he would not have held the position he does for so long.
Never before, in the field of human endeavor, has so little been achieved by so many, for so much, in service to so few.
Put the brakes on spending NOW. No matter how hard it is to do it today, it will be twice as hard to do it tomorrow. You politicians are all the time talking about how much you care about future generations. Are you serious or are you just bullish*tting us? Because if you really care about future generations, then you will rein in spending NOW — and keep reining it in. Do NOT grow government. Do NOT keep taking on new programs and building unneeded high schools on sister islands. Keep government “LEAN & MEAN”.
The Civil Service has got drunk and is gambling away our money and our future. The politicians are encouraging them. I hate to say it, but we are going to need a significant and enduring cost cutting exercise before the bottom drops out entirely.
To Anonymous 7:54am
“The Civil Service”?? Hello?! Civil servants do not decide how money is spent. That is done by the Cabinet (meaning the Ministers). They decide amongst themselves and their decisions are trickled down to Chief Officers. Do not blame civil servants for the decisions made by the people who voters send to work for them. That would be like blaming the brick layers for the miscalculations made by the architect that were not questioned by the contractor!
So it is the politicians not answering phones, not responding to e-mails, and not reading the laws? OK. Thank you for clarifying.
It’s not the Civil Service, it’s the politicians spending the money.
The money is being spent on the civil service…
What do the politicians spend the money on? Too often an inept, lazy, bloated and wasteful civil service. Enjoy your bonuses given without regard to your performance? Your standard cost of living increase every year? Your non contributory pension? Your salaries that are higher than the private sector, often without the equivalent skills and competences? Your extended maternity and paternity arrangements? Your unlimited dependents? Your free credit union banking facilities? Your free healthcare, including post retirement?
You know almost all that gets paid for by the private sector, right?
What a joke – how can there be surplus when these wild spenders have borrowed $300 million. Think back 4 years when this bunch took office – reserves and no new borrowing. Now Julie want to get rid of the financial control imposed by the UK. Remember those were put in place because of Mac and his wild spending.
Enough is enough! These so called independents are bankrupting this country with their wild spending. God help our children.
VOTE EM OUT!!
Yep but not including the health & pension liability.
I can see the retirement age going to 67 soon
Ha, no chance you’ll be able to retire at all!
The current government cares nothing for the people of Cayman than they are leaving in debt and are only interested in themselves.
When Ken Jefferson is allowed to conspire to hide over $2 Bln in liabilities from the Balance Sheet, there are no surpluses. Dishonest Cabinet regimes have cooked the books for over a decade, and there’s no plan on how to reconcile the omissions. Taxes probably.
Have no fear, I am confident they will find a way to spend the extra $16 million.
We know who is the biggest hog at the trough.
Is this a metaphor when it’s true? Oops
Cayman Kind Economics, nothing to see here
any comment ppm?
any comment Mrs governor?
any comment chamber of commerce?
Thank you for the opportunity to comment.
On behalf of an unnamed benefactor we are happy to confirm that plans are already well advanced. When the economy collapses, significant funding will be immediately available to clear the rubble, and provide low cost tiny homes to Caymanians on 0.1 acre plots in Cayman Brac, on interest only loans.
Mount Trashmore is to be relocated to, and spread over the western end of Cayman Brac to bring it all up to the same level and provide a nice flat surface for Caymanians to enjoy.
Further future expansion space is being identified in the Isle of Pines.
The benefactor and a coalition of the willing will then build high rise luxury properties for foreign investors. These will need foreign labour and so dormitories will be built to house them. The benefactor is excited to announce that 50,000 jobs will be created, some paying up to $2,000 each month.
Highly skilled Caymanians will be welcomed to apply. Since none are qualified, and training them will take too long, and cost up to $500 per person, we are arranging for hundreds of foreign nationals to be given Caymanian status.
Special shops will be built by the benefactor so that employees of the benefactor can have somewhere to spend their money. After the $1,950 they will be charged in rent, and given employee only special lines of credit, despite earning only up to $2,000 each month, it is calculated that each person will have a further $1,050 to spend.
Given market demand, and the new culture, the turtle center is to become the chicken center to feed both the jerk chicken and KFC contingents who will squabble over which is to become Cayman’s new national dish.
The monies saved will be split between the benefactor and the benefactor with a small commission payable to the family members of some politicians. Interested politicians are invited to establish real estate agencies, with BVI parent companies, in anticipation of this exciting opportunity.
In addition, the Governor has kindly agreed to surrender her house. It, Governor’s Beach, the Westin, and Villas of the Galleon are to be redeveloped with an iconic 200 floor building.
Lessons have been learned from the loss of the southern end of Seven Mile Beach. Accordingly, to preserve the beach from erosion, use of the beach will be reserved only for those staying in the iconic complex, with exceptions made once a month (for half a day) for persons driving Audi motor vehicles, on payment of a $100 entrance fee.
In place of the Governor a new Chinese People’s Cultural Exchange Commission will be built within the Western Caribbean Cruise Terminal, and $3 trillion will be loaned to any Caymanians that insist on remaining at initially favorable rates. Interest only payments will be accepted for the first 100 years. Souls are to be acceptable collateral.
We hope that this will allay any concerns. We got this!
With the exception of the port it sounds good to me.
never have we had more $$$ and achieved so little…
a tragic waste that will haunt cayman in the years to come
Money printer go BRRRRRR
Now legalize weed so we can finally capitalize tax revenue like alcohol on the insanely profitable black market instead of allowing drug dealers access to one of the most popular forms of illegal liquidity generation while putting a HUGE dent in demand for inter-island drug boats. Ganja is the main transport; criminals and guns come for the ride.
Will never be legalized for now. We would have to go independent first. However, the first step in the right direction is decriminalization.
How about be protect our borders and enforce our laws?
What a mess.
$5 will get you $10 that the position the CI Govt will be in at 31 December 2024 will be -$100million, also known as the “backshot”