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Minister for Finance and Economic Development, Hon. Roy McTaggart

Published 9th November 2018, 2:45pm

In the first nine months of 2018, Cayman Islands Government's finances and that of the Entire Public Sector have registered a significant surplus.

The unaudited Financial Report for 1 January to 30 September 2018 that Minister for Finance and Economic Development, Hon. Roy McTaggart, on behalf of Cabinet, released today (Friday, 9 November 2018), shows that the overall surplus was $183.8 million for the Entire Public Sector, which is $91.2 million higher than the $92.6 million budgeted, to this point of 2018.

This advantageous position was due to better than expected performance of revenues by 9%, or a $54.4 million positive variance, in tandem with lower expenses by 4%, or a $21.6 million variance.

Also adding to the overall surplus is the improved operating position of Statutory Authorities and Government Owned Companies (SAGCs) which posted a combined surplus of $11.0 million; this performance was $15.2 million higher than budgeted.

Of the overall surplus of $183.8 million, Core Government registered a surplus of $172.8 million. This was achieved by higher than anticipated coercive revenues that were higher than budgeted by $46.4 million. Examples of coercive revenues include import and stamp duties, tourist accommodation charges and financial services related revenues.

Overall, the Government registered higher than budgeted revenue in most revenue lines. Major positive variances include, sales of goods and services (such as trade and business administration fees), which were higher than budget by $ 2.6 million, as well as Government's investment revenue, which was higher by $5.2 million.

Other factors aiding the Core Government's surplus were lower expenditures in Personnel Costs, which were $13.2 million lower than the anticipated figures in the budget and, for Supplies and Consumables, also lower, by $15.1 million. Transfer Payments were also less than budgeted by $3.0 million along with net gains on financial and non-financial instruments being higher than anticipated by $1.4 million. However, the positive variances in the above areas were reduced by expenditures for Non-Government Suppliers which were $9.2 million higher than budgeted for the nine-month period.

Additionally, Government bank balances for cash and deposits stood at $535.2 million, which was $112.0 million higher than anticipated in the 2018 Plan & Estimates.

"While revenues are generally lower in the second half of the financial year, the Government is confident that the positive results for the first nine months of the financial year will enable us to achieve or exceed the budgeted Net Surplus of $81 million by the end of this year," Minister McTaggart commented.

Report is published on www.mof.gov.ky