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Topic: government finances
Government earned a surplus of $196.2 million in the first quarter of 2021.
Following a budget deficit of $38 million last year, government forecasts a much larger deficit for its core operations of $98 million in 2021 and of $59.6 million in 2022.
The Cayman Islands government would have achieved a budget surplus last year, had it not been for $65.4 million in unexpected COVID-19 pandemic-related additional healthcare spending and financial support for small businesses and displaced workers.
Government’s fiscal situation is not as serious as initially feared with government revenues higher and expenditures lower than forecast six months ago.
Despite the economic impact of the COVID-19 pandemic, Cayman’s core government has maintained a surplus of $30.4 million in the first nine months of 2020.
The Economics and Statistics Office has this week released its COVID-19 Economic Impact Assessment and Stimulus Plan that is informing government policy on tackling the economic fallout from the pandemic. Finance Minister Roy McTaggart outlined the key findings of the report at the end of May, stating that the economy might contract by 12.2%, with nearly 10,000 jobs lost, including almost 3,000 Caymanian employees.
The Cayman Islands government has started the tumultuous economic period in the wake of the coronavirus pandemic with better than expected first quarter fiscal results.
The Office of the Auditor General in its latest report has flagged purchasing breaches within the National Roads Authority.