Government budget gets green light

The United People’s Movement government’s two-year fiscal package has been approved in Parliament, after two days of scrutiny in Finance Committee.

Premier Juliana O’Connor-Connolly, on Friday, presented the report from the Finance Committee in Parliament affirming the budget figures which will take government through 2024-2025.

The budget was passed unanimously.

The UPM budget includes $150 million in new borrowing and a package of tax and fee increases to help fund several high expenditure projects including two new high schools in Cayman Brac and West Bay and an Olympic-size swimming pool in George Town.

Government’s revenue and expenses in 2024 and 2025 are both projected to surpass $1 billion, with capital expenditure and investments forecast to total $160.5 million in 2024 and drop to $117.9 million in 2025.

The cost of the civil service, according to budget stats, continues to grow with government allocating $500.7 million in 2024 and $522.3 million budgeted for 2025 – amounting to an $85 million increase over the space of three years, from the $437 million budgeted in 2022.

The premier said the jurisdiction is expected to net surpluses of about $43 million in 2024 and $53.2 million in 2025.

While the premier outlined her administration’s key focus areas over the remaining electoral term, there were some key projects that were either allocated small amounts or likely shelved for the next two years.

While members drilled down on the budget, there were a number of hot button topics that also came into the national spotlight, including the resurrection of the cruise pier debate, the future of minimum wage and implications for local workers and Cayman Airways’ gateway growth.

Immigration challenges were also once again brought to the fore, with both O’Connor-Connolly and Border Control Minister Dwayne Seymour signalling changes to Cayman’s immigration law.

Deputy Governor Franz Manderson pointed to a rise in sham marriages and suggested that “dangerous criminals” were also using marriage as a means to remain in the Cayman Islands. He appealed to Caymanians, warning those who are abusing the system to “go to the court and file for divorce before we get you.”

Following the budget approval, the House was adjourned.