🏦 Unanimous approval for Cayman's largest ever budget

Premier Juliana O’Connor-Connolly announced that all 17 MPs, from both government and opposition, who were present in parliament on Friday, supported the near CI$3 billion budget for the next two years. The UPM Government is expecting to collect around CI$1.46 billion across the Entire Public Sector next year and has plans to spend more than CI$1.41 billion, leaving a projected surplus of just about $42 million. In 2025, revenue is projected to increase to over $1.5 billion, with expenses reaching more than CI$1.46 billion and a surplus of around $52 million. 📈

Despite the healthy surpluses and the spending plan's alignment with the Public Management and Finance Law and the Framework for Fiscal Responsibility, there are concerns about potential deficits due to additional appropriations and the number of capital projects planned by the government. The government does not expect 2023 to end in deficit, given the higher-than-expected revenue collected over the year, but the year is not over yet and December is usually the government’s highest spending month. If 2023 goes into deficit or the surplus is considerably lower than the $22 million expected, the next two years will also be impacted. 🚧

The record-breaking budget covers spending on major projects, including a multi-million dollar high school on Cayman Brac and roadworks that will cost over $100 million. There is also money set aside to kick-start various new projects, such as the upgrade to the General Aviation Terminal at Owen Roberts International Airport, a proposal for the cargo port redevelopment and a new submarine communications cable. Over the two years, the government will spend more than $1 billion alone on salaries and benefits for civil servants. 💰