📊 Cayman Islands Government projected to end 2023 with $22M surplus

The Cayman Islands Government (CIG) is expected to close the fiscal year 2023 with a surplus of $22.7 million, according to the finance ministry's final predictions. This figure is $5.1 million less than originally forecast and significantly lower than the $116 million surplus recorded at the end of the third quarter in October. Despite this, the CIG's earnings for the year are expected to exceed $1,034 million, $56 million more than anticipated. However, it has also overspent by over $60 million. 📈

Increased funding to the Health Services Authority and the Cayman Islands National Insurance Company, higher than budgeted overseas undergraduate scholarship costs, and a rise in Permanent Financial Assistance monthly payments have contributed to the increased spending. Despite these challenges, the statutory authorities and government companies are forecast to have a net operating surplus of $1.7 million for the year ending 31 December 2023. This is attributed to the economic recovery from the COVID-19 pandemic and contrasts with an originally budgeted loss of $19.1 million. The economy in Cayman is expected to have grown by 3.1% by the end of the year. 💰

Despite the surplus, the rate of inflation is a concern, forecast to have run at 5.2%, following a rate of over 9.5% in 2022. This has led to a significant increase in prices, putting a strain on working families. The government has implemented measures to alleviate the burden of inflation, including free school meals and subsidising residential CUC bills. By the end of the year, the CIG's cash balances are expected to be $497.9 million, $185.7 million better than originally budgeted in 2021. The Debt Service Ratio and the Net Debt Ratio are also projected to be within acceptable limits, indicating that the CIG should be in full compliance with the Principles of Responsible Financial Management. 💹