Deficit forecast is very real, warns premier
(CNS): The huge surplus reported in the government’s unaudited accounts for the first three months of the year does not mean that the public finances are out of the woods. The pre-election review, which predicted a deficit at the end of this year of more than $26 million, is accurate, and Premier André Ebanks said it would take “considerable focus” to turn the finances around before the end of the year.
Members of the opposition recently implied that the deficit prediction is not necessarily genuine, as there is plenty of time for the government to work on reducing spending or increasing revenue.
But Ebanks made it clear that the forecast is sound, and it will take work to get back on track. “It is very real,” he told CNS when he sat down with us on Friday to explain more about the new administration’s plans for the months ahead and what policies are taking shape.
With finances playing a crucial role in determining what the new coalition can or cannot deliver, Ebanks said the first-quarter results can be somewhat misleading because there is always a healthy surplus at the beginning of any year. That’s when the government collects most of its fees from both tourism and financial services.
“If you take that snapshot on time, yes, it would be accurate to say it is surplus,” he said. “But a government or a household can’t think that way. You’ve got to think what’s going to happen by Christmas… when you know you’re getting into your leaner time, when the income isn’t coming in but your expenses are still being incurred. There is now a projected deficit. There is no doubt about it.”
Ebanks said the NCFC administration must now reconcile this deficit. It has begun shaping its first Strategic Policy Statement and how it will balance the government’s books to at least break even by year-end, if not generate a surplus.
The premier said the administration will examine what revenue measures are sitting on shelves that have not been implemented yet and are palatable to the economy. He pointed to plans to implement a new fee for the significant amount of information that the government now has to collect to meet its international tax reporting obligations, which was not rolled out this year as expected.
Ebanks, who is also the financial services minister, explained that these fees have not been implemented yet because the Tax Information Authority has not so far been a revenue-collecting agency, and so the government needs to review the best way to collect these fees. It will also look at what else has already been discussed with the financial services sector that could generate additional revenue to fend off the deficit without impacting ordinary people.
The premier said that spending must also be curtailed. The government might not be able to proceed with certain things, and the new finance minister, Rolston Anglin, is already examining the various projects that were expected to be funded in this budget. The Scranton Park in George Town is one of several under review, not because they were not good ideas or well intended, but because they may not be affordable now, he added.
“Some challenging decisions are going to have to be made,” he said. “We can’t lose our reputation for a healthy economy, where we usually have surpluses, and we certainly can’t… breach the Framework for Fiscal Responsibility.”
The forecast now for 2026 is also a deficit to the tune of $44 million, with a cash deposit shortage breaching two of the FFR’s basic requirements. “We have to seriously consider what parameters we’re going to put in place… for new revenue measures, cost savings or ways to do things more efficiently,” Ebanks said.
The government has begun discussing the use of artificial intelligence in the civil service to identify efficiencies, he said. That doesn’t mean current government staffing levels would be impacted, but there may be things that can be done more efficiently without adding to the headcount. “We’re going to have to think about how we work smarter,” the premier added.
The NCFC government is expected to deliver the Strategic Policy Statement in July, setting the scene for its policies over the coming term and lining up for the budget, which will be presented before the end of the year.
This will be combined with the release of the coalition agreement between the parties and the three independent candidates who make up the NCFC, Ebanks said.
Ebanks said there is an inherent link between the deal the coalition has come to, based on the merging of their manifestos and the SPS that will be shaped over the coming weeks, as these outline what the new government wants to achieve, which must be tied to the budget.
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Category: Government Finance, Policy, Politics
there’s an easy way to fill that $26m gap, just don’t throw it down the $50m hole in the brac known as the high school
It is easy to bash and criticize. If we believe we have an idea or proposal that could become a new revenue stream for the government, then message your MP and pitch it. Granted, it is not guaranteed that the relevant Chief Officer will see the merit of it, but who knows, our idea might reach someone who moves it forward. At least we tried.
4@9:35am – sell ganja cultivation licenses by category of number of trees. $1000 and upwards per year.
There’s one.
…..why do you refer to increased revenue i.e. more taxes…why not CUT government spending:
* Cut wasteful government spending
* Cut Vanity Projects – JuJu’s folly on the Brac, Kenny B’s open air drug market
* Cut CI CS and PS graft
* Cut CI CS and PS incompetence
* Cut CI CS and PS non-performers
* Cut CIG/CI CS and CI PS absenteeism
…by “cut” I mean “fire” and NOT on Full Pay till they hit retirement….
Silly you when you fire you create more customers for NAU. There has to be a better way to educate and motivate them if that doesn’t work then yes fire.
For all of you that believe Andre’s BS. This is the mess he created while a member and leading the PACT gov’t for the last 3.5 of 4 yeas. His teammate Sebrina approving everything in healthcare that crossed her desk so she could get re-elected. Jay’s massive overspending in EE/NS. paving every last alleyway, new parks, etc. Keep paying for the hemorrhaging with Turtle Fam, Cayman Airways, and all of the entities like them. Fund massive celebrations and parties to gather the voters so they could be convinced how good PACT was. All to get re-elected. The new school and park were well in motion while he was still part of the government. Spend, spend, spend. I find it offensive that Andre blames this on “others”. We are not fools!!!
Go far and stay long, you PPM-propaganda-spreading XXXX. You had plenty time at the trough.
JOCC, Bryant & Seymour along with help for Joey Who will save us all. PPM-PPM-PPM
Cayman Islands Treasury Bonds
Why not issue Cayman Islands Treasury Bonds and tap into these insurance companies to allow some of that money to stay here and circulate in our local economy by investing in 10, 20, 30 & 40 year bonds
https://www.rt.com/news/618309-uk-pensions-reform-capital-flight/
UK Legislation to consolidate local pension schemes into “megafunds” of at least £25 billion by 2030 is being framed by the government as a strategy to boost infrastructure, energy projects, and job creation.
Because earlier corrupt regimes have left the CI Treasury clinging to the UK backstop by a thread. Billions in additional liabilities have been excluded from the CIG Balance Sheet in order to appear to remain in compliance with the FFR. Ken Jefferson openly admits this to this conspiracy, and somehow retains his job, and walks around free.
The entire PPM walks around free—or do you think this situation started six years ago? It should have been addressed in the late 90s, but instead the PPM started granting millions in concessions and approving PR and work permits like crazy. So if you want people in jail, aim your cannons correctly.
Aim Fire PPM : we did. Hurray!!!!!
Cayman Captive Insurance Sector Sees Record Growth in 2024
https://www.captive.com/news/cayman-captive-insurance-sector-sees-record-growth-in-2024#:~:text=The%20Cayman%20Islands%20Monetary%20Authority,Class%20D%20open%2Dmarket%20reinsurer
As of December 31, 2024, the Cayman Islands was home to 697 Class B, C, and D insurers, collectively writing $41 billion in premiums and holding $153 billion in total assets.
Traditional single-parent captives licensed as Class B(i)s saw 13 new licenses issued in 2024, while third-party reinsurers licensed as Class B(iii)s experienced notable growth, with 24 new licenses issued.
Why not get CINICO to change there Break-Even-Government-Service Strategy and tap into the local billion dollar insurance industry and begin operating like a for-profit-organizations to increase government revenue
To generate new revenue, the Cayman Islands Development Bank could also tap into the billion dollar Insurance Industry and also begin offering Affordable Home, Life and Auto Insurance with discounts for government employees in order for our government to stop relying sole on regular income from Immigration Work Permits, Customs Duty, Land Transfer, Company Registration & License Fees.
Lets think about keeping some of that Pension and Insurance money here on island to circulate in our local economy while creating jobs
https://www.rt.com/news/618309-uk-pensions-reform-capital-flight/
UK Legislation to consolidate local pension schemes into “megafunds” of at least £25 billion by 2030 is being framed by the government as a strategy to boost infrastructure, energy projects, and job creation.
Lets listen to the Labor and create jobs
The Job Market vs Jobs Created
As the strong American influenced World Bank publishes its findings of 1.2b young people entering the Job Market and only 400m Jobs being created leaving a slew of un-skilled and young people projected to be un-employed over the next 10 years
https://live.worldbank.org/en/event/2025/spring-meetings-jobs-the-path-to-prosperity
Which means that as the world Bank continue to assist and evolve by embracing ai technology, we need to plan to create un-skilled jobs because most of the jobs offered now a days, are Skilled Work from Home Jobs.
https://www.flexjobs.com/homevariant/t2
According to the World Bank, we have to find ways to create 250M to 300M a year in Un-Skilled Jobs by creating institutions like an unskilled Government Garment or Uniform Clothing Manufacture Department to make Uniforms, Backpacts, Legal Note Portfolios with the Cayman Islads Coat of Arms and Computer Bags for our School Kids like Government Employees did in India to manufacture uniforms for there Military
https://www.worldbank.org/en/news/feature/2024/11/12/benin-a-win-win-partnership-for-the-inclusion-of-young-people-with-little-or-no-education
How to Expand Your Revenue Sources
https://www.business.com/articles/opening-the-flood-gates-the-steps-to-expanding-your-revenue-sources/
The best businesses have multiple sources of revenue and expanding those sources doesn’t have to be a monumental task.
When you have only one source of revenue, your business is at serious risk for failure and credit default as the cost of inflation increase
Multiply our revenue sources by changing our National Insurance Company and our Turtle Center to a For-Profit Operation instead of just providing a service and breaking even
Create a Garment Government Manufacturing Department to make uniforms for our government employees and school kids and expand our Turtle Center to start farming
• Lobster
• Shrimp
• Snappers
• Parrot Fish
could diversify our government business services and reduce the danger of only relying on a break-even not-for-profit revenue services earned by fees on Work Permits, Company Registration, License and Land Tranfer Fees
Think about what even 10 percent more revenue would do for our government business revenue and job creation.
Fish Farming in the USVI, Whats wrong with us over here???
https://www.virginislandsnewsonline.com/en/news/fish-farming-in-usvi-what-is-wrong-with-us-over-here-violet-thomas-gaul
Use this as the motivation to seek out new ways to expand services and increase revenues.
Doing so may require you to think outside the box, but you’ll soon see the rewards as you increase your bottom line and increase unskilled job opportunities while making our government stronger.
In other words we need to grow and expand our government services and revenue along with the private sector to keep pace and control with our un-planned rapid population growth by creating un-skilled jobs while finding ways to increase our government revenue
The moral of this story is don’t believe anything Kenny Bryan tells the country. He said the possibility of a deficit in 2025 was a hoax. Now we get a better explanation from the Premier that shows a deficit is a very real possibility for 20255 unless this government makes changes. It is this same Kenny Bryan that tried to discredit the work of the Caribbean’s leading economist, Marla Dukarhan. The only thing Kenny Bryan believes is great is his brilliant Acropolis called Scranton Park.
The Premier also blamed everybody but himself for the national debt being over $400m when it was his PACT government who is responsible for this. PACT doubled our debt in less than 2 years, but you obviously don’t hear him mention this at all as it doesn’t fit his self-righteous narrative.
There goes the prison
A bigger prison is how we get out of this.
I really hope so, the prison alone will bankrupt us, if the Consultants $8million fees don’t.
Hidden travel and associated expenses to meetings added to fees are costing Cayman the equivalent of 32 affordable homes. Hopefully government and Chief officer responsible do the right thing.
Chief officer… ?
Civil servant seduced and used by those who have much to gain. Ego boosting invitations to social occasions, expensive wines, and generally blowing smoke is reward enough.
In return, phone calls are made, proposals fast tracked, obstacles removed, having no concern for the well being of Cayman.
03@10:55am – just so you know, airline fares are all approved and regulated by IATA,not CIG. Google!
They could stop bailing out failing private schools purely because of religious links and the fact they have been long-established. A failing business is a failing business.
I’m looking at you Truth for Youth, and Triple C.
03@3.35pm – it can also be seen that helping to finance some private schools reduces that per-student cost to the public purse overall. Facilities,busing,lunches, etc?
It’s not as if education standards between public schools and those two referenced are that much different.
Only 2 schools here have consistently developed the most successful students….Cayman Prep/High and St.Ignatius Prep/High
Truth for Youth is officially a weak school. Triple C is only satisfactory after years of struggling. I can see the logic of propping up decent schools, but TFY in particular is a stain on local education, and that’s even taking into account the relative quality of alternative institutions.
It’s like the housing market. People are desperate for school places like they are for homes, so some people accept garbage.
Or maybe just because of their name, “Truth for Youth”, have you ever heard of such bunk in this day and age? The two you mentioned are nothing more than Sunday schools for all ages, no wonder they turn out kids with heads full of rabble.
I sent my child to TfY pre-school back in the early 2000s. What a waste of time. My child learned close to nothing. Children from other preschools were light years ahead. I promptly transferred out after just one year and I understand they are not much improved today.
So it is evident over 65s and under 18s will not be getting mandatory Cinico Coverage which was already motioned by the Previous Govt. It appears no funds from the Govt Coiffures will be allocated to cover this. I still can’t fathom why the previous Govt did not enact forthwith. So we the uncovered ones will be left out in the cold , as this is not a priority. Ex-gratia pensioners and Immigration Reform are the high priorities at the moment.
Previous government were never going to do it, more interested in high salaries, benefits, money in their pockets, partying, drunk driving, crashes, abusing women, why would they care about ‘real genuine’ Caymanians who have worked hard and honestly.
Appears only Caymanians that worked in ‘government’ or ‘public’ are Caymanian.
If Government wants to deal with the deficit then it needs to babysit the projects that continue with overruns. There is a lack of accountability when government projects don’t complete within budget and a lot of finger pointing.
The Public Accounts Committee is comprised of politicians and no disrespect Roy but I didn’t hear you take anyone to task for the past 4 years. I hope PPM does a better job at being opposition this go around as you failed miserably the last 4 years. Too concerned with forming alliances. How did that work out for ya??!!
Be an effective opposition and hold them accountable for the over spending versus planning for the next election.
The people of this country deserve better!
03@12.38pm – you’re absolutely correct! Good project management in the public service (Civil Service and SAGCs) doesn’t exist.
We do deserve better! Deputy Governor, please speak up we can’t hear you!
The PPM highlighted TONS if mistakes made by PACT and UPM administrations, but the public ignored the while they were happening AND during the election campaign. The Auditor General himself highlighted that PACT took our debt from $250m in 2020 to over $500m in 2022, highlighted by PPM and the public ignored it again and voted PACT 2.0 back in. PPM didn’t fail miserably; the voting public did by voting these clowns in again. I can’t wait to hear who they try and blame this time around after 8 years in charge.
For all of you lemmings who don’t believe this is true, here is a link.
https://tradingeconomics.com/cayman-islands/government-debt-to-gdp
Debt skyrocketed under your precious Premiers PACT government after a decade of debt reduction under PPM.
Debt reduction by selling out our land to foreign investors, and not investing any money back into our people or our communities, is not something that will be looked back at favorably.
The people go deserve better than the PPM all mouth, give away don’t care Party:that’s dem PPM.?” Say it aloud!
Its called responsible financial management Andre!! You dont create a deficit simply because you collect the majority of your money in the 1st Quarter of the year. You simply plan for the months where revenues are lower. Andre seems to be saying that we will not have a surplus because we will get paid most of our money between Jan and March and we dont know how to budget effectively to make it last for the rest of the year. $1B received between Jan and March is not any different than $1B total being received in monthly amounts between Jan and Dec, its still $1B.
Also, if you dont yet have your priorities sorted out, how do you know you will struggle to break even?
Sounds like an amateur excuse to me!!
Sounds and proves previous governments had the biggest farce party on earth! Let’s see your bank accounts, business accounts and properties!
We have thirteen public holidays. If Cayman Airways was to bring back (or introduce) long weekend charters to Costa Rica, Cancún, San Andrés, Dominican Republic, the airline would certainly make a profit, and government would need to give them less money. The problem back in the day, was that they would say one departure time, and then waste people’s time by leaving several hours later. Also, what happened to pitching Cayman as a Spring break destination for university students?
Young people, come to the maddest party place, where on a Saturday you can drink $10 USD pints all night until midnight, then you have to pack up and go home.
Spring breakers are going to Mexico or Jamaica. Here is too expensive, and too conservative.
03@11:30am – your point about Cayman Airways charters is valid, subject to aircraft availability (scheduled activity, maintenance, etc). But please leave the spring breakers to wherever the go now. Getting fewer btw, as many places are banning them! Not them, thank you!
@11:30am dude, we don’t need direct links to countries that will allow drug Cartels to easily use Cayman as a transshipment hub to the US.
caymanians elect these people so you have no-one else to blame but yourselves.
and to make things worse, you also prevent the most qualified and successful people on island from being elected…
welcome to wonderland.
Repeat, repeat!
cns..bot alert on thumbs down
i have a dream,,,that one day cig will implement just one recommendation of miller shaw or e&y reports.
i have a dream….that one day cig will announce plans curb uncontrolled spending and expansion of the civil service.
i have a dream…..that one day cig will take measure to stop welfare fraud in these islands
i have a dream…..that one day cig will prosecute those who commit welfare fraud in these islands
Keep dreaming.
We often use Uber when traveling.
But do we really want to get into a car with an unknown local driver knowing the standard of driving?
What we need is decent, reliable public transport that runs in the evenings and at weekends.
So you know the Uber driver in a foreign country?
Have you seen reports on Uber drivers?
tell me the difference between an uber driver and a taxi service here?
at least real uber is regulated and traceable…
I have a dream that one day you will go away 10:56
don’t expect anything from cig….
remember…cig are the ones who banned uber here to protect the rip-off taxi cartel.
cig are the ones that prevent walmart from coming here to protect local store owners..
cig are the ones that prevent any airline from under cutting the loss making, rip-off cayman airways…
cig are the ones that limit people from using solar technology
welcome to wonderland.
I gave you a thumbs down for bashing Cayman Airways. You obviously do not understand its value. Ask Jamaicans what happened when the lost Air Jamaica.
By then it was too late. They had already lost their teachers and nurses, and basis security. They were doomed, and remain doomed.
so you think it’s ok to prevent basic level of competition on airfares???
enjoy ur $500 tix for a 1 hour flight to miami….!…..zzzzzzzzzzzzzz
What about the spending by people like Kenneth Bryan and Dwayne Seymour and Juliana?
I am glad to see that the new NCFC government is reviewing at least some of the unaffordable pre-election projects of the previous government. Clearly now is not the time to be committing more than $700 million to Kenny’s poorly thought through mega-airports project. We cannot afford that or many of the other projects Kenny and JuJu initiated.
We go through this every year. Also, the fact that most of the CIG is behind on audited statements and we have loads of unrecorded liabilities (Pension & Healthcare) mean we aren’t in great shape. Then you add in the annual shortfalls for Cayman Airways, Turtle Farm etc. Plus we always need a transfer to HSA to make up for non-paynent and uninsured visits, both of these should not be happening.
We can’t spend money we don’t have.
We have borrowed ourselves into a fiscal hole.
Ongoing multimillion dollar projects should be stopped for evaluation and reconsideration.
BRAC. school , look at what is really needed, and proceed with something we can afford.
KENNY projects, STOP all work immediately on all of them.
PRISON resort…STOP paying the $8Million to consultants and allow Government, NOT consultants , to decide what we need and can afford.
Just the above will give us $250Million we won’t be spending on stuff we can’t afford and don’t need.
Give parents $2000 per month vouchers for their children to attend the parent’s choice of schools. That would save at least another $50 to $100 million.
And reintegrate our community. And give the kids better education and prospects.
LOL and sure it would go to the children!
Oh no what will JOCC & Kenny do if you stop their vanity projects? The tears will flow like a river!
Kenny is already running around knocking on doors trying to get involved in the new government.
Self important narcissist really believes he has something to offer.