Premier: Central gov’t will ‘break even’

Premier McKeeva Bush said Thursday night that central government accounts would probably ‘break even’ by the end of the Cayman Islands’ current budget year.

However, the public sector is still expected to end the year on 30 June with an operating deficit, due to the overall performance of statutory authorities and government companies.

“We will end up with about a $7 million deficit because the government companies are having it hard,” Mr. Bush told a crowd of more than 150 people in Bodden Town Thursday night. “It is still better than the 81 million dollars that they left.”

Mr. Bush’s last comment is a reference to the former People’s Progressive Movement administration, which ended its last year in government with an $81 million operating deficit. An operating deficit means government expenses were greater than its revenues for the year.

The current United Democratic Party government has some work left to do if it intends to break even for the 2011/12 financial year.

The Legislative Assembly’s Finance Committee is expected to have a meeting soon to approve supplementary funding requests for the current year. The precise figures regarding how much the government will need have not been revealed, but two sources within the government that spoke on condition of anonymity said the public sector would have to make up tens of millions of dollars. Most of the problem is due to additional spending.

Some of the cash is being sought for spending items that were unplanned when the year started; others are required to deal with increases in government spending for some already budgeted areas, the Caymanian Compass has learned.

One example of a budget increase that government will have to support via supplemental funding is the $4.6 million boost given to the Royal Cayman Islands Police Service earlier in the year. That extra spending was approved amid a major public outcry over a string of gang shootings that occurred in September 2011.

Supplemental budgets are fairly common during government budget years and are used when adjustments are needed to make ends meet.

Premier McKeeva Bush has previously warned of a government financial fall off during the current 2011/12 year. Government ended the 2010/11 year with an unaudited budget surplus of about $25 million.

 

0
0

5 COMMENTS

  1. If the government went 50/50 profit sharing with whatever company develops the dock for the cruise ships.

    They would easily recoup 20 mil a year off the docking fees the ships bring in.

    at the present moment, the boat tenders. Whom ever owns that gets 40 dollars a head to ship the passengers off and on the cruise ships.

    Now if the average cruise ship holds 3k people. And we will say they have a low 50% of the total people coming off each boat.

    40 dollars times 1500 people, per boat. And on average we have 3 boats in at any day. Sometimes up to 7. Right now, the person that owns those tender boats is making 60K off each boat.
    PER DAY. So this person is making at least 180K a day. Now put that on a 20 days work week. Is 3.6 million per month. And that is a very close figure.

    0

    0
  2. And so the amazement continues. We should We hope.
    Phrases which appear regularly in accounting records

    The Accountants of this island must be shaking their heads in total disollusionment that the Government still has no idea of its financial position. Candy stores know their position better.

    I guess creative accounting is the method used by the government and flying by the seat of its pants seems to still be in fashion.

    Long live the cowboy.

    0

    0
  3. Mr Premiere what happen to the Oil refinery Idea?. I think it is a good one. People may scoff at the idea when they think of our beautiful waters being contaminated but modern double lined tanks , leak detectors and spillage casements minimize such risk..

    Don’t let the idea die so easily, it is very difficult for most people to look outside the box lest step out of it.. Market us the idea with a list of pros and cons. lets get an update from your assigned project manager.. National reserves is my point of view.

    I can imagine it being a brain bank of engineers from which young Caymanians can draw experience and form a platform for research and development.

    If the project is the idea of an investor, profit sharing is better than taxes any day.

    0

    0

Comments are closed.