Public spending must start falling, says Saunders
(CNS): The Cayman Islands Government expects to collect more than CI$1 billion in revenue by the end of 2022 but also to spend close to one billion for the first time in its history, Deputy Premier and Finance Minister Chris Saunders said Wednesday, stating that public expenditure must begin to come down. He said the country had not yet reached the point where the line of growing government spending had exceeded the line of economic growth but if it doesn’t slow down, those lines will cross.
However, speaking to the business community at a Chamber of Commerce luncheon event, Saunders announced the likelihood that the fuel subsidy that the government had implemented throughout the summer to keep CUC’s fuel factor at 15 cents would likely be extended, adding more than $1.5 million to this year’s spending plan. The subsidy to CUC has so far racked up more than $5 million of public cash. But this had allowed the government to maintain economic activity through a difficult summer, he said.
Saunders revealed that in the coming days Premier Wayne Panton will announce further help this month because the fuel costs for October are very high. CUC purchased the diesel burned during this month around June before fuel prices began to come down. But he noted his concerns that gas prices would increase again on the world market due to the OPEC decision to cut production, which would continue to fuel inflation.
His audience of business owners and leaders were likely pleased to hear Saunders tell them that it was important the Cayman Islands remains a private sector-driven economy, where the government is the facilitator, helping not hindering it. But he noted a number of challenges ahead for the country, such as increasing pressures of inflation and a rapidly growing population. Nevertheless, he said that Cayman “overall was doing pretty good”.
In a lengthy address, in which he touched on a number of issues, he said the government was expecting a surplus by the end of this year but noted concerns about the level of spending and the need to gradually bring down that side of the balance sheet and encourage the private sector to drive even more of the economy. He said the economy was expected to grow this year by 3.4% and over 3% in 2023.
However, with the rapid increase in the population, housing stock is not keeping pace and this is now one of the biggest challenges that government must deal with over the coming months.
The deputy premier noted the continuing need to help families with social programmes like the free school meals initiative, which are costly but remain important. That initiative alone saves local families around $25 million a year that will be spent elsewhere in the economy, but also ensures healthier kids and less stress on the healthcare system, he said but stressed that such programmes must be fully funded.
It appears that government will not struggle to fund these initiatives this year, as it is on track to bring in more than one billion dollars in 2022. Saunders said that in the first nine months of this year, the government collected over CI$818 million, which is $135 million more than it had collected by this time in 2019, but had spent almost $200 million more than it did that year. However, next year government’s expenses should decline, given that it will no longer be paying out the tourism stipend.
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Category: Business, Government Finance, Politics
start with fat cat salaries starting with the Gov downwards – that will save a pretty penny Chris with you included!
Saunders is trying to turn this country into another Jamaica. Just keep pumping up all those NAU social programmes. Keep the voters dumb and dependent on you. that’s how you get re-elected.
Why didn’t Saunders mention the hard times that are coming – this bubble will not last and this country will be screwed because there will be no way to pay for all these social programmes and giveaways!
This will be impossible for the Government to do as long as Franz is the DG, only way to reduce the public spending is to reduce the size of the civil service.
10:00. That’s right cut 100’s from the Civil Service cancel 100’s work permits and the private sector will employ all the Caymanians dumped from the Civil Service. Only an idiot would think something like this could actually work.
10:00 thankfully the mental heath unit will be open soon.
10:00 Franz always on your mind.
Maybe he should start with canceling his big civic center in Northward and Julie TWO schools that they want to build.
A THOUSAND MILLION $$$$s…What we need to have from Saunders is a breakdown of the sources of revenue. If a large proportion relates directly to property development and Stamp Duty what happens when those funds, for whatever reason, slow down or dry up. Is government putting aside a big reserve for a rainy day because if they are spending a THOUSAND MILLION $$$$s a year and the revenue suddenly ain’t there – we would have a problem. There is no magic source of new revenue to bridge the hole in the Treasury.
About 80 per cent is the offshore financial industry and generated by expat finance and legal professionals who have moved here from big financial sectors like London. They should be thanked and given incentives to stay here.
They should start by cutting the Wellies out of the parliament lunch break.
Saunders makes it sound as if government expenditure is an extraneous factor which government somehow has to combat. Does he not get that every $ government spends is determined by the government’s policy choices? At least the $5m C UC subvention got spent on the tax payer – contrast that with the $10m Kenny has spent on a new DOT video.
In the Brac most Government workers with a Government vehicle (especislly all the expats) drive the Govt.vehicles every where, to bars,shopping, beach, you name it, burning Govt gas.That need to stop ASAP. That would save lots on gas and wear and tear on the vehicles.
Does anyone know how many new vehicles the government bought for their “WORKERS” in the last three years ?
STOP IMPORTING POVERTY! (It really is that simple).
No it’s not, 5:55. It’s much more complicated than that. Many Caymanians don’t want to work so foreigners on low pay have to be brought in to do your yard, your a/c servicing, your plumbing, your car repairs and bodywork, your construction, your girlfriends hair and fingernails and feet, your supermarket check out and a host of other jobs.
Booya 8:22, that one bite.
Hundreds of millions gifted to his buddies, the preferred developer, in untracked duty waivers, concessions, forfeited room taxes, and land transfers. If duty waivers are capped at $30mln, and the Ritz just completed a $50mln refurbishment, how much is left…we’ll wait while you get out your calculators.
1. Start by reducing the salaries of MPs. ( In doing so, we just might get politicians who work for the people of the country rather than just milking the country for all they can get while in government).
2. Create a Law that specifies a term limited for MPs. (Too many well paid life long career politicians, who are doing absolutely nothing for their constituents much less the country as a whole are still getting too high salaries and doing nothing).
3. Make a Law that MPs will be held accountable for purposely, willing knowing, and right in your face use the public monies for their own political and self gain.
Then and then only, will the government be runned by MPs that are working for their constituents and the country as a whole.
We dont need 19 MPs
Start with Education Ministry.
They are a bloated bureaucracy and much of this is on Julianna.
Private sector gets better results for less money.
Stop expanding government education to preschool.
Also, don’t allow PPM to ever take on construction of large public facilities such as schools, dock, airport. If there was ever an investigation, there would be lots of fines and maybe even some jail sentences.
R
Stop giving free lunch to kids who don’t need it!
He can start by cutting the elected members salaries. That in itself, is a huge strain on the budget!! They are getting paid more than they are worth, for sure!!
They had to have a second luncheon because Wayne gave Andre the mic last time and Chris threw his yellow yams out of his playpen.
This guy is making a lot of statements while Panton remains mostly mute and inactive…..I’m thinking Wayne discovered he doesn’t have the cajones we need and will pass leadership to this guy who begs industry for equal opportunity….we are screwed!
3:13 are you a moron or wa . The Minister who you speak of is in charge of Financevtherefire he must speak to that subject . If you and the other idjut ss who liked your comment don’t like him or what he says. Just do yourself a favor don’t read the news don’t listen to the news in fact don’t breathe, there are others more worthy of the oxygen you consume. 🤨
Want to save. Here is the best thing you can do. Cut civil service and get as many people out as you can with online services. There, fixed. Force the same on to banks. If I have to talk to an other trainee at the bank, I will be so upset.
3:02. Most of the services are ready online. Let’s just cut teachers firemen cbc worc social workers, police prison. Those are the largest departments. Oh wait you can’t cut those departments so let’s cut
Financial services staff. Finance staff, health staff, planning staff. On wait we really need those workers.
Get the picture.
If the private sector would get its act together. Hire Caymanians and stop breaking the laws etc we won’t need a large civil service.
What a load of… Saunders knows that CIG spending will never decrease, it’s just like his waistline, or any MP’s waistline for that matter.
Decisive action on breaking the CUC monopoly 3 decades ago would have alleviated our reliance on fossil fuels, levelled out energy cost and mitigated the need for CIG to subsidise fuel cost. The savings from this alone could have built us a public transport system like one of the best on the mainland.
CIG could have purchased the grid and had it run independently from CUC. If CUC was a licensee it would open the doors for a multitude of renewable energy providers also as equal opportunity licensees.
This obviously didn’t and very likely won’t happen now as, selflessness, integrity and foresight are not strong suits of Cayman politicians.
Those of us with long(ish) memories will recall how CUC, with a transmission network that was not insured at that time, relied on its customer base to fund the repairs to the network caused by Hurricane Ivan back in 2004 by way of monthly levies raised from its customer base.
It is not known how much the government of the day tipped into the hat for this, but what it did miss was a once-off golden opportunity to ‘nationalise’ the grid, by which the entire electricity generation and distribution plan for Grand Cayman be renegotiated at the then-pending expiry of the monopoly agreement with government.
Power provision today- CUC and other multiple providers (including sustainable) all sharing a distribution network owned by government and run on non-profit basis- would have been a whole different kettle of fish fry and rundown…
Cannot trust this Jamaican with our money.
DP Saunders says alot of things…remember the Resh Hour ? Stamp Duty Exemptions for Caymanians ? I do. Let’s get this done already. You say you want to help…well this will.
Where to even start here.
1. This happens ever year. In July the government brags about the huge surplus but then a few months later realizes the money is already spent.
2. Cayman has a population crisis. But Saunders speaks about this like the government didn’t create the problem in the first place.
3. The City of Miami has a population 6 times that of Cayman but both have a billion dollar budget. How is this possible? Where does all that money go?
It must be spent on the streets and highways of Little Cayman and the Brac!
Why must we have increasing population? It seems this leads to all our problems.
Need better stability for current numbers of our population, which is fair and properly accommodates Caymanians, before increasing the population.
It’s getting harder and harder to accommodate those who cannot take responsibility for their own lives. They cost money. (Buying votes is getting too expensive) There are plenty of people in the world that actually pay for their own lives and still contribute to the whole. Some day soon CIG will not be able to pay the price to stay in power and that is what he is trying to say. The inevitable is coming faster than you think.
Especially when the increase is from Jamaica Honduran economic refugees reproducing and depending on NAU.
Have you noticed how Hispanic staff in ALT, Hurley’s and other stores have begun refusing to speak English to the customers?!!
No 7:38 I haven’t. They are always polite and pleasant to me. Maybe it’s you…..
yawn…just more waffle to placate the chamber.
read miller-shaw or e&y reports…how many recommendations have been implemented?
Where is all the money going? Its not like its being spent on public services, our roads still suck, we have a horrible public transport system, We dont have a single payer healthcare system, what did they spend 1 billion dollars on?
Wages for our elected leaders. Cracking value for money!
As well as suing for Kenny Jay and Mac freebie first class jaunts.
Freebies to PACT supporters.
DUH!! Deputy Premier you need to get rid of the “it’s not our money so we can waste it” mentality which governs the public service. Wish you luck!!
CUC, every government that has been voted in, the voters have cried about the high cost of electricity. Nothing is being done about lowering the cost.
I still believe an audit should be done on this company and done by an auditor maybe from outside of this island.
Government should have more input in supplying the electricity to this island, not just a private company who is a monopoly.
The amount of affordable housing those government stipend payments could have built if ridiculous. Also, I’m yet to hear of anybody being prosecuted for abusing the stipend system and we know 100s of people were.
Some of the stipend claimants were serving prisoners in Northward and of course they got paid out ! It would be hilarious if it wasn’t so tragic.
Gasboy, Carepay, Dynamitegate, etc. The list goes on my friend.
There is too much free money, free stuff, free driveways, unpaid healthcare bills the government has to pick up, and general financial support for those who have found out the government will give them free things if they can’t be bothered to work for it themselves. The fiasco of the covid stipend being given to so many people who never worked a day in tourism has only reinforced this idea now.
My neighbour has her housing paid, her bills paid, has a nice new iphone, a much nicer car than mine, runs her air con all day, and sits at home on her fat ass all day like a hippo doing nothing while the weeds in her yard are waist high. She says she doesn’t like the jobs she was offered, she thought they didn’t pay her the vast income she thought she deserved, so she decided instead to live off the government and is much happier now doing nothing and still getting paid.
While the government allows/promotes/supports this kind of lifestyle and feeling of entitlement, the islands are on a slippery slope to even more widespreadh multi-generational laziness, and crime.
Come down hard on it now with proper social reforms, and rewards for hard work, not rewards for no work.
Your neighbour sounds like Ronald Reagan’s “Welfare Queen”…who turned out to be a huge exaggeration but it played well to his voters.
Really? Well then please refund the treasury with the amount you squandered in giving yourselves unwarranted pay raise before your seats were warm. Practice what you preach will go a long way.
As long as the only trade union in the land is also the largest voting bloc, there is no way public spending will ever go anywhere but up. The election of politicians is totally dependent on the salaries and benefits of civil servants.
Also dependent on Jamaican and NAU recipients for Saunders Seymour Kenneth and Mac to keep their snouts in the trough.
Surprising just how confident the man is using guess work……given the simple fact that CIG hasn’t/doesn’t/will not produce proper accounts for public scrutiny.
Maybe just be honest and say this is our best guess… because it frankly is.
how about starting with rolling back undeserved raises for greedy mp’s?
And the creation of jobs and the creation of jobs. Deputy Chief Officer, Assistant Deputy Chief Officer, Assistant to the Assistant Deputy Chief Officer- most of whom are not qualified to provide the services required by the posts. I have not never seen so much job creation. That man….he need fe stop talking.
They have to create jobs as Sir SelloutAlot destroyed Caymanian priority by creating WORC to help employers ignore immigration laws.