We at the Caymanian Compass understand the situation the country now faces with its budget is not entirely one of our own making.
The United Kingdom has essentially delayed the release of its territory's most recent fiscal plan largely because it believes Cayman's spending overall is still too high relative to the revenues it is earning.
The current government deserves some credit. It has done yeoman's work in whittling an operating deficit down over the past two years to the point where a "break even" stage is now possible, or at least able to be contemplated.
However, there are lingering problems within the government budget that have long been apparent, to those who have been paying attention at least: spending on public projects, and public sector pensions and health care costs - which are at least partly responsible for the public sector's skyrocketing personnel budget. Overarching all of this is a lack of audited government accounts and a general feeling that publicly released figures regarding earnings and spending lack credibility.
In short, the country faces a very serious situation and it could face it sooner than many would like. If hard, but responsible decisions regarding the government budget cannot be made by local officials, we may soon find ourselves in a situation where the ability to make those decisions is effectively taken away.
It is now more important than ever for everyone in the country to pay attention to what happens with the budget and in the house of assembly over the next few weeks.
From the evidence available to us, at least, it seems that Cayman cannot continue to have its cake and eat it too. Spending must be cut, or revenues must be raised. There are a number of
options for doing so; they include direct taxation, requiring civil servants to pay for part of their own pensions and health care, the elimination of certain government expenditure in areas where public funds probably shouldn't be used anyway.
The time has come for tough decisions, we can only hope our elected representatives have the courage to make them.
Otherwise, these decisions will be made for us - and perhaps they will not be in the best interests of the Cayman Islands.
Spot on, Mr Editor.
These politicians have been avoiding reality for far too long. Now it’s biting them on their fat backsides, and I hope, will goad them into rational and effective proposals. Hope springs eternal in this wee breastie, I hope not against the odds.