Memo: Gov’t must make up 20M

Cayman
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.

According
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.

That
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.  
 

The
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
year’s end.

That
means government managers would have to find an additional $20 million in the
spending plan during the waning weeks of the fiscal year.  

It
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. 

According
to the document, the $15 million surplus was needed to cover three main areas:

*$5
million to pay into the government’s general reserve fund

*$5
million to pay into the public service pension past service liabilities

*$5
million to assist with the 2011/12 fiscal year which begins on 1 July.

The
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.

Please
see the full story in Monday’s Caymanian Compass….

0
0

2 COMMENTS

  1. Even if they could possibly reduce the deficit by one dollar, who is going to believe it when most agencies can not produce auditable financial statements. The previous AG complained about this huge deficiency and got run off for not rubber stamping the reports. The new AG is saying the same thing about the seriously deficient reports and will not rubber stamp them either. You watch, they will run him off too. It’s just a short matter of time before direct taxation kicks in. Get some real successful business persons in there to run the program. Not the inept low IQ career politicians who excel only at incompetency. They sure do look good in their puffed up suits. So sorry nobody is home. Can’t hide the glazed over look. Busted.

    0

    0
  2. This is weird. The Minister of Finance is responsible, and as Cayman drifts further into a desperate financial quagmire, all he can do is issue unrealistic fiats and demands upon departments. From a Royal Wedding visit, apparently.

    0

    0

Comments are closed.