💰 Cayman Islands Government maintains healthy surplus despite spending concerns

The Cayman Islands Government (CIG) continues to run a significant surplus, despite recent calls from former premier and finance minister, Wayne Panton MP, for the civil service to help cut public spending. According to the third quarter unaudited financial report on public finances, the surplus for the Entire Public Sector stands at $116.6 million, which is $69.6 million more than predicted. This is largely due to CIG collecting $49.5 million more in revenue than expected. 📈

Several revenue streams contributed to the surplus, including vehicle charges, Mutual Fund Administrators Fees, accommodation fees, and work permit fees. The real estate sector also generated significant revenue, collecting $3.6 million more than forecasted in stamp duty due to high demand in the market. Despite the healthy surplus, spending remains a challenge, with expenses for the first nine months of 2023 amounting to $734.9 million, $22.1 million more than the year-to-date budget. 🏦

Personnel costs for the first nine months of 2023 were $323.6 million, $20.7 million less than the budget, mainly due to delayed recruitment. However, this still amounts to nearly $23 million more than the same period in 2022 due to the Cost of Living Adjustments awarded to civil servants at the end of last year. The savings in staff costs were offset by higher-than-budgeted levels of expenditure in Outputs from SAGCs, Outputs from Non-Governmental Suppliers, and Transfer Payments. Health care costs continue to put significant demands on the public purse, with payments to the Cayman Islands National Insurance Company (CINICO) and the Health Services Authority (HSA) exceeding their original year-to-date budgets. 💸