Islands budget managers have been instructed to make up roughly $20 million in
the next seven weeks prior to the end of the government’s fiscal year on 30 June.
to a memo issued Thursday, the details of which were shared with the Caymanian
Compass, estimates taken at 5 May projected the government would end its
current budget with a $4.6 million operating deficit.
deficit figure includes only central government operations, and did not take
into account the performance of statutory authorities and government-owned
companies. An operating deficit means government’s revenues were not sufficient
to cover its expenditures for the period, according to the projections.
document indicated that Premier McKeeva Bush, who is also the Minister of
Finance, and the elected government found that 4.6 million gap to be “unacceptable” and stated that the
government should seek to establish a $15 million budget surplus by fiscal
means government managers would have to find an additional $20 million in the
spending plan during the waning weeks of the fiscal year.
was not clear from the memo exactly how this would be achieved, but departments were advised that they would be given reduced budget limits. It was also stated
that “ministries, portfolios and offices should not hire new staff” from now
until 30 June.
to the document, the $15 million surplus was needed to cover three main areas:
million to pay into the government’s general reserve fund
million to pay into the public service pension past service liabilities
million to assist with the 2011/12 fiscal year which begins on 1 July.
Compass sent a list of questions to government regarding the budget situation
Friday, but had not received any response by the end of the day.
see the full story in Monday’s Caymanian Compass….