Claiming news outlets that asked for specific budget figures didn’t intend “any good for this country”, Premier McKeeva Bush released financial statements for the recently ended government fiscal year in the Legislative Assembly on Monday.
“My public pronouncements are all supportable,” Mr. Bush told members of the house.
Premier Bush produced
budget figures Friday that showed government managed to trim some $30 million
from its projected fiscal deficit at the end of the last fiscal year.
But Mr. Bush didn’t say exactly how
that was done.
“I am delighted by the significant
improvement in the country’s finances,” George Town MLA Alden McLaughlin said.
“(But) what transpired…that has changed the position so favourably, or if that
is not the case, why were the projections so wrong?”
“We did what we had to do,” Mr.
Bush told lawmakers Friday morning in the Legislative Assembly. “I’m happy the
(People’s Progressive Movement) acknowledge…and they know that it was the right
thing to vote for the (United Democratic Party).”
According to Mr. Bush, estimates of
the total public sector operating deficit for the 2009/10 budget year stood at
roughly $45 million in April. The operating deficit is basically the different
between what government earned and what it spent for the year.
The premier said total central
government operating revenues as of April were estimated at $492 million. By 30
June, the end of government’s budget year, revenues had increased to $502
million, according to Mr. Bush, who was quoting from unaudited internal management
accounts figures.
The increase in revenues was mainly due to a CI$9 million increase in domestic levies on goods and services – fees and taxes. Another $1 million in additional revenues came from imports and international trade and transactions.
Government operating expenses,
which were estimated at $502 million in April, fell to $485 by the end of June.
“We spent $17 million less than
anticipated,” Mr. Bush said.
The majority of that $17 million reduction was accounted for in an $11.5 million cut to ‘supplies and consumables’. Another $4.3 million was reduced from the budget of non-governmental organisations and some $2 million was reduced from transfer payments made by government.
Core government actually ended the
2009/10 budget year on 30 June with a modest $17 million surplus. However,
Premier Bush said the positive earnings were eaten up by the $26 million government
had to use to pay off its debt and an additional $6 million in “extraordinary
expenses”.
The lion’s share of the $6 million
was used to assist in the recovery of Cayman Brac from Hurricane Paloma in
2008.
Public agencies and government-owned
companies also lost a net of $1.5 million, which was subtracted from government
earnings.
In all, the figures left Cayman
with an operating deficit of some $15 million at the end of the 2009/10 fiscal
year, Premier Bush said.
“We have performed three times better
than the revised budget (in April) expected,” Mr. Bush said.
Comparing the recent figures to
government’s performance during the 2008/09 fiscal year, the premier said that
government ended that year on 30 June, 2009 with an overall operating deficit of
$81 million. The previous position, Mr. Bush said, is what caused the
government to remain “in a less desirable position” with its finances as of 30
June, 2010.
Opposition party members have
argued that government operating deficits do not get carried over from year to
year and are only a reflection of financial performance over a single 12-month
period. However, those shortfalls must be made up eventually and Mr. Bush said
the Cayman Islands government was not in a good cash position at the end of
June 2009 with only $7.6 million in the bank.
“I see where the opposition has
doubts about the veracity of what I have said,” Mr. Bush told house members on
Friday. “If Christ had come down and sat down here, they still wouldn’t believe
it.”
At this point during the debate,
the premier was warned about his comments by Speaker of the House Mary
Lawrence. Mr. Bush apologised.
“That was just for general
knowledge…about Christ,” Mr. Bush said.
The premier promised to release
management accounts figures for the first three months of the current 2010/11
budget year once those become available.
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To me this shows a leadership attitude that is willing to do what it takes to help Cayman survive in lieu of trying to please everyone. It’s clear that there will always be negative comments and a lack of support from opposing parties. But the bottom line is they had their chance and now it’s time to give the current leaders their chance. Good leadership mean that you have to be willing to make the hard decisions, this is a not a popularity contest, it’s a hard job and we need some to make hard choices if we are to survive. What I see here is leaders that are willing to make hard choices that will be best for the future of the Cayman Islands, I think we should give them our support.
To simply say it has happened but you dont know why it happened is unbelievable. Nowadays, financial reporting is a moment away. For Mr. Bush to somehow take credit for this but doesnt know why, is simply further indication that this man is flying by the seat of his pants.
The Enron financial analysis must have found a job?
Sarbanes-Oxley Act was tried and failed?
The Auditor General was issued a crystal ball?
The old wet the finger and put it up in the air trick?
No! It was tick-tack-toe followed by ring around the AG.
The UDP government is making progress. Indeed the UDP should be call the People’s Progressive Party as well, because the real PPM (Kurt, Alden and crew) brought this country down to an 81 million deficit. I can never forget that