In the first half of 2018, Cayman Islands Government’s finances for the Entire Public Sector has registered a surplus.
Minister for Finance and Economic Development Hon. Roy McTaggart, on behalf of Cabinet, released today (Friday, 10 August 2018) the unaudited Financial Report for 1 January to 30 June 2018. The figures show that Government’s overall surplus was $201.1 million for the entire public sector, which is $67 million or 50% higher than the $134.1 million budgeted, for the first half of 2018.
This advantageous position was due to better than expected performance of revenues by 8%, or $38.4 million, in tandem with lower expenses by 5%, or $15.5 million.
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 $10.4 million; this performance was $13.1 million higher than budgeted.
Of the overall surplus of $201.1 million, Core Government registered a surplus of $190.7 million. This was achieved by higher than anticipated coercive revenues, by $33.1 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 in most revenue lines. For instance, sales of goods and services (such as trade and business administration fees) were higher than budgeted by $ 2.2 million, as well as government investment revenue – which was higher by $3.1 million.
Other factors aiding the Core Government’s surplus were lower expenditures in Personnel Costs, down by $10.2 million from the anticipated figures in the budget and for Supplies and Consumables, which were down, by $11.4 million. Transfer Payments were also lower by $1.8 million; additionally, there were higher gains than anticipated on financial and non-financial instruments, by $2.0 million.
Additionally, Government bank balances for cash and deposits stood at $576.1 million, which was $110.5 million higher than anticipated.
“As the trend for revenue is generally lower in the second half of the year, it is anticipated that the surplus will align closer to budgeted expectations by year-end. Government is confident it will achieve the budgeted Net Surplus of $81 million, at a minimum, by the end of this year,” Minister McTaggart commented.
Click here to see the 2nd Quarter Financial Report in full.