Yale University law professor Stephen L. Carter recently
provided about as succinct an interpretation of the upcoming US presidential
election as we’ve ever read:
“One side preaches that raising taxes on high earners will
fix everything, while the other insists that with tax cuts, we can grow our way
out of the mess. Neither party seems willing to make a serious attempt at
cutting actual spending, particularly on entitlements.”
Here in the Cayman Islands we have seen various government
administrations do precisely the same thing over the past several years; some
increases in fees and taxes, some attempts to increase private sector business
and government revenues thereby. These efforts have managed to achieve a degree
of success.
However, as the close of the 2011/2012 budget year draws
nearer, we learn that government will need yet another supplementary budget and
that the Premier/Ministry of Finance expects government will show an operating
deficit by 30 June.
While we believe government should continue efforts to grow
business and should consider fee and tax hikes where absolutely necessary, we
also believe Cayman cannot continue to fall into the same trap its neighbours
to the north are now in – namely – ever increasing spending.
According to Community Affairs Minister Mike Adam, roughly
8,000 people in the Cayman Islands are now receiving some form government
assistance. In a population that census figures put at 55,000, that 8,000
figure is simply staggering.
Entitlement programmes are just one area of concern. The
government, year after year, continues to put money into various projects and
businesses that may not be considered “core government services”.
Eventually, any realistic budget for the Cayman Islands will
make cutting spending its central focus. In this regard, we’re somewhat
encouraged by new Deputy Governor Franz Manderson’s recent comments about
“doing more with less” in the civil service.
We hope the elected government will follow the same line of
thinking this spring.
Related Videos
