(CNS): Even though the former premier and finance minister, Wayne Panton MP (NEW) was urging the civil service to help cut public spending recently, government is still running a healthy surplus so far this year. According to the third quarter unaudited financial report on public finances, published last week, the surplus for the Entire Public Sector stands at $116.6million some $69.6million more than predicted. This is due to CIG collecting $49.5million revenue more than expected.
Government collected $26.7 million more than budgeted expectations in coercive revenue from multiple streams including a whopping $7.8 million more in vehicle charges as residents continued to import a higher volume of cars than expected despite government putting a stop to the importation of older vehicles. Mutual Fund Administrators Fees were up by $3.5 million as the number of registered funds increased.
Accommodation fees generated CI$15million more as the re-opening continues to see visitors return which has also fuelled an increase in ex-pat workers leading to a spike in work permit fees generating some $14.5 million more than predicted for the last nine months.
Meanwhile, the real state sector continues to generate significant revenue for government as it collected $3.6 million more than it had forecast in stamp duty due to the relentless demand in the real estate market. Land Transfers generated $6.3 million more than expected as a result of higher value transactions.
Overall comparing the year-on-year numbers, the entire public sector surplus was $34.8 million higher than the same period last year with statutory authorities and government companies bringing in $20.6 million higher than they did over the same nine months in 2022.
However, spending is still a challenge even as government battles to stay within budget. Expenses for the first nine months of 2023 amounted to $734.9million some $22.1million more than the year-to-date budget. Personnel costs for the first nine months of 2023 were $323.6million, $20.7million less than the budget mainly due to delayed recruitment, officials said. This still amounts to nearly $23million more than the same period in 2022 because of the Cost of Living Adjustments awarded to civil servants at the end of last year.
Supplies and Consumables costs were $102.0 million for the period and were $2.6 million less than the year-to-date budget. But as more projects come online during the remaining quarter of 2023 government officials believe costs will align closer to the amounts anticipated in the full-year budget.
The savings against budget in staff costs were offset by higher-than-budgeted levels of expenditure in Outputs from SAGCs by $12.6 million, Outputs from Non-Governmental Suppliers by $21.7 million, and Transfer Payments by $10.3 million.
As always much of the additional spending was down to soaring health care costs for government as the broken system continues to put demands on the public purse.
Payments to the Cayman Islands National Insurance Company (CINICO) and the Health Services Authority (HSA) exceeded their original year-to-date budgets by $3.8million and $8.6million, respectively. The $3.8million adverse variance with respect to CINICO is due to the fact that actual costs for the Health Insurance for Civil Service Pensioners exceeded the budget for this category.
The majority of the $8.6million adverse variance with respect to the HSA is due to actual costs for the Care of Indigents exceeding the budget for this category by $8.8 million. Outputs from Non-Governmental Suppliers of $60.0 million were $21.7million more than the year-to-date original budget, mainly due to the infamous “NGS 55 Tertiary Care at Local and Overseas Institutions” being $24.5 million more than the year-to-date budget of $16.2 million.
So far in the 2023 financial year, Parliament has approved, via section 11(5) and section 12 of the Public Management and Finance Act, an additional $30.8 million for NGS55. This is due to the significant number of people who are inadequately insured or not insured at all as they cannot afford the premiums.
Transfer Payments of $50million were $10.3million more than budgeted between January and the end of September mainly due to spending on scholarships and bursaries as well as Financial Assistance. But compared to 2022 government still spent $23.4 million less so so far this year than last on this areas.
While the Third Quarter’s performance has positioned the government to be optimistic about its financial performance for 2023 during the final quarter of the year there will be a push to meet planned 2023 objectives and the premier and new finance minister, Juliana O’Connor-Connolly MP (CBE), will need to diligently monitor spending over the last couple of months of the year.
The nine-month report also highlighted that Core Government Revenues must exceed the performance of $978.1 million set-out in the original 2023 budget in order to reach the revised target of $1.037 billion detailed in the Strategic Policy Statement tabled in Parliament on 26 April, 2023.
See the full report on the government website here: Extraordinary Gazette Supplements | Cayman Gazette (gov.ky).
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But how well will it be under the control of Juliana
Let’s not forget about the $2.5 billion unfunded health care liability.
or pension liabilities (Miller Shaw).
I could apply accelerated …….. nevermind. What’s the point. Foolish to explain what we all know.
All lip service that does us all absolutely no good. We are mostly on our own treading water (we hope it’s only water) in an adverse economy. Good luck everybody.
Don’t give up, and don’t let us all be pulled apart. I will help everyone who I can.
Bear in mind that the financials are “unaudited” and the public will not know if Government’s figures are accurate until late next year if lucky.
The 2022 results for the PAHI ministry was not mentioned in the Auditor General’s Report as the audits have not been completed so how do trust 2023 3rd quarter results????
Never in the history of public administration has so little been achieved with so much.
“Government collected $26.7 million more than budgeted expectations in coercive revenue from multiple streams including a whopping $7.8 million more in vehicle charges as residents continued to import a higher volume of cars than expected despite government putting a stop to the importation of older vehicles.”
The importation of cars will not stop as the population keeps growing and there is no realistic alternative to driving as the public transport system is a joke.
A small budget surplus against colossal unfactored medium-term liabilities is still a fail, per Auditor General’s reports. We still don’t have passing grade accounting to put trust in these predictable quarterly self-congratulatory proclamations.
Insurance (both medical and household) is becoming a big problem for the people of Cayman.
Our medical insurance premiums increased 40% last year, 32% this year. Thats an 84% increase in 2 years. Next year my husband reaches 60 and his medical insurance premium will more than double at his next renewal.
Our house insurance has gone from $382 two yrs ago to $628 this year, and now next year is $848 per month from January. How on earth are we supposed to continue to pay these premium increases.
I expect that next year we will have to stop both the house and medical insurances because we cannot afford the premiums. We are already on the most affordable plans. Its totally out of control now. We are one big bill, one storm, one illness away from bankruptcy.
We all should get 20-30% increase in pay. Private and government should start now.
so what was wayne on about then ?
So if the numbers are good why a change in government/direction to people who the AG says want to spend our money without any accountability and to hand reigns over to those who put us in serious debt the last time??? makes absolutely no sense? Mackeewa and JuJu keep threatening to leave politics we just wish they would carryout their threat.
Kenny Beach, Kenny World and JuJuville soon take care of that.
Yeah, it might look good compared to budget. how does it look compared to actual 2023 expenditure?
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Cayman News Service