Core government revenues hit a milestone at the close of 2022, crossing the billion-dollar mark, according to Deputy Premier Chris Saunders.
Speaking on the Cayman Compass lunchtime Facebook talkshow The Resh Hour Wednesday, Saunders lauded the financial achievement based on preliminary government figures, saying the earnings from the financial services industry have “definitely been a big part” of achieving the milestone figure, along with the construction industry.
According to the unaudited figures for the 2022 financial year (which ended on 31 December 2022), core government revenue stood at just over $1 billion.
The budget for the 2022 Financial Year that was tabled in Parliament on 26 November 2021 put forecast revenue for the 2022 Financial Year at $940.9 million which means, the actual revenue for 2022 is approximately $80.2 million greater than forecasted in November 2021.
Surplus budget
The latest statistics, he said, show that government has also achieved a $47 million surplus, moving out of a deficit budget.
However, he cautioned that though Cayman’s economy is in a “pretty good” position, it is not back at pre-COVID levels.
“What it indicates is we are still in the post recovery. We still have tourism not exactly back where we wanted,” he said, noting that revenues for January’s tourism accommodation were twice that of January 2019.
Saunders, who is also finance minister, said work is under way to prepare government’s Strategic Policy Statement, which is constitutionally due 1 May. The SPS provides the foundation for the two-year budget cycle.
He said he and other ministers are meeting with stakeholders to get “customer feedback” to determine what has or has not been working in order to continue the “people-driven process”.
Support for those struggling
As Cayman shifts away from COVID, Saunders said, the focus will be on helping those in the community who are struggling.
“At the end of the day, we still need to be in a position to help our people and you can’t do that running deficits,” he said. “The simple way of putting it is, that it takes cash to care… We’re now in a much better position financially, but we do recognise that we still have challenges out there for our people,” he said.
Government, he said, is working on policies to help assist with the financial strain that is being felt in the community due to rising interest rates and inflation.
Agriculture Minister Jay Ebanks, Saunders said, has been promoting local farming and more regional trade within the agriculture sector, “because food security is still a big issue”.
He added that government is looking to develop its own capital markets to help cushion the impact of external factors, like the US Federal Reserve rate increases.
Additionally, he said, government is looking at a phased approach to assist those affected by the rate increases, starting with a banking product for local seniors through the Cayman Islands Development Bank by which they can borrow at a lower interest rate.
He said government met recently with Caribbean Development Bank officials and is working with them to “fine tune” the planned programme aimed at those who are close to retirement age with roughly four or five years left on their mortgage.
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