$25m surplus for 2010/11

| 25/08/2011

(CNS): As a result of more income than expected and a cut in spending, the government has finished the 2010/11 financial year in the black, swelling the public purse with an a total surplus of $25 million against an expected deficit of more than $30 million. The positive result for government, Bush said in a statement, was down to the“sterling efforts” of government in guarding the islands’ finances. The premier explained that central government’s operating revenues was $535 million, which was $25 million more than had been budgeted in June 2010. With core government spending down to $483 million, $25 million less than expected, it was able to wipe out the anticipated deficit and move into a surplus.

The news comes in a statement the premier will deliver in a radio and television broadcast this evening (25 August).

“This is a tremendous testament to the prudent and responsible management of the country’s finances by the government,” Bush said as he congratulated and thanked all “the hard-working civil servants that contributed to this great achievement.” 

With interest costs down by $3 million less than budgeted because government delayed taking out its $155 million loan, Bush said this was because government was “managing prudently” and watching revenues and expenditures, enabling it to stretch the time before it became critical to borrow.

Bush said this despite the fact that government had needed to take out a short term loan in October of $78 million and then another emergency loan in December of more than $30 million because it was unable to pay bills, according to details in the recent auditor general’s report. Bush claimed, however, that he had saved the country some $3 million in interest by delaying the main loan.

He stated that this was something the auditor general never took into consideration when they talked about what was paid as a result of the financing negotiations. “They never said we saved $3 million,” he said, referring to the latest report from Alastair Swarbrick’s office about government procurement and the events surrounding the financing of the $155 million loan approved by the UK Foreign Office.

Bush noted that instead of a $31 million deficit, central government made a surplus for the 2010/11 financial year of $22 million. The statutory authorities and government companies were expected to produce a deficit of around $1 million but instead, Bush said, a surplus of almost $3 milllion has been reported, bringing government’s surplus up to $25 million. He said this represented a turnaround in public finances, compared to the budget his government had said it would deliver, of some $59 million.

“Government well understands the need for the provision of timely information, and the importanceof certainty of information,” Bush stated as he explained that the results would be sent to the Office of the Auditor General for examination. He said while there may be some normal adjustments, government didn’t expect any significant revisions. “We firmly believe that we have struck a good balance between these two factors by waiting until now to announce this information,” Bush stated as he went on to criticise the opposition for their comments about the budget earlier in the year.

“I should say that everyone knows how much the opposition berated me before the new budget was presented, saying I wouldn’t reach the $15 million surplus I was asking civil servants to achieve; but once again the opposition is proven wrong, and I will continue to prove them wrong as the difference is, I have good ideas. I have the right plan to bring investment, give the government revenue and our people jobs. The opposition is at the opposite end, doing nothing with no plan,” he added.

Category: Politics

Comments (74)

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  1. Anonymous says:

    Wha happen to all dem people that lost they money in First Cayman Bank. You want to pay them bank too? remember dem outstanding bills from Mr Ryan too and all dem duty waivers you gave to the Ritz.

    • Anonymous says:

      Really!  ONCE AGAIN:  have the required duties, fees, etc.  been paid by Michael Ryan for the Ritz development and if not, WHY NOT? 

      Mr. Bush, what is your answer?

       

  2. Anonymous says:

    How about investing in a radar system to stop drug,gun and human smuggling! Looks like the customs boats and the Helicopter are not fruitful. I am sure the technology is out there.

  3. Anonymous says:

    Mr. Swarbick please quickly audit the Nation Building Fund and publish the findings. With the publication of the issues with the Cohen Deal,CCTV and Jazz Fest we were able to miraculously have a 25 Million Surplus and get the CS their 3.2% re-instated, then I am sure from the Nation Building audit we should see the entire CIG debt disappearing and all tax hikes removed..

  4. Anonymous says:

    of course expenses are going down.  the more Mac loses support the less his cronies cost the government.  Less luxury travel, no "payroll" for non-existent services, less "TP52" payments, etc. etc.  Too bad he can't p*** them all off.  That would save us in so many ways.

  5. Anonymous says:

    I guess we can now expect the 25 cent increase on fuel be lifted right away since Mac has done such a miraculous job to save us from financial doom.

  6. Big Bang says:

    Yeah right, next thing now he’ll be trying to convince us that the universe was created by some hippie in the sky.

    • Anonymous says:

      I know this Surplus is correct because I saw Bernie Madoff leaving the New Government Administration Building late at night on many occassions, each time he had a bundle of papers under his arm!

  7. Anonymous says:

    We should hire Dart as the new premier! After all he’s a business/investment genius. Plus he could personally clear up the debt and allow us to start over. Plus he has Cayman Status…..LOL who’s with me? Dart for Premier! Lol

  8. Anonymous says:

    "The premier explained that central government’s operating revenues was $535 million,…. With core government spending down to $483 million,"

    $535 – $483 = $52 million dollars.

    Somethings missing……..

  9. Anonymous says:

    If the Premier is this great a finanacial genius then it is clear we do not need to sell our soul to Dart for a full recovery.  We can keep our West Bay Road now.

  10. The Spin Cycle says:

    Well, I guess this comes down to now believing Mr. Swarbrick, a trained and experienced accountant, or Mr. Bush, who has no accounting experience and his team of CFO's, who learned their accounting skills from the guys at ENRON.  Hmmm, perhaps it will all clear up when we get to see the numbers.  Numbers??  We have no numbers.  We are in the midst of re-configuring the way our accounts are kept. And have put in an enormous amount of effort -on your behalf- into simplfying the entire system to make it easier to move seeming deficits from one department to a different department. When this is done you will plainly see how we have turned the economy around.  But it might take awhile what's the difference really between a + and -?  Except one line?  And some figures might have to be slightly adjusted but they're all there. Most of them are but in different places. See?

  11. Anonymous says:

    Bush is the boy who called "surplus"

    and the boy who called "wezz broke"

    and the boy who called'I'll take a pay cut"

    and the boy who called'I didn't follow the regulations because I wanted to get the best deal for the Caymanian people (and a free (to him) ride in a private jet)).

    Etc.

    Etc.

    Only a real fool fool would belive anything he has to say.

    • Pending says:

      Mac,

      I betcha $25 Million dollars that we are 4,550,000+ Million (church handouts, cohen farce) in deficit by the time these figures you are reading have been balanced by the AG.

      And then you will claim the AG is bullying you and its the OPPM's fault right?

  12. Just Sayin' says:

    Madam Tooth Fairy, we cannot even begin to thank you enough. Pesonally, I cannot wait to see the size of our surplus after Santa pays us a vist in December.

  13. Anonymous says:

    you know its one thing be critical of the government, but this entire website is pathetically biased and its clear that it, and its participants have a clear agenda todestroy anything this government does, irrespective of wether its good for the country ot not.

     

    For that, I seriously think CNS has lost much of its credibility and I suspect they know it as well.  This isn't a media house, its a political arm.

    • truth says:

      Its not CNS.  Its us!  The people!  Hello!  You get to write what you think , we get to write what we think and everyone can who can read can figure out what most people think.  Unless you don't like that kind of free thinking?  Obviously you and Bush(unless this is he) are in the minority.  Long live CNS and the freedom of speech.

    • I Care says:

      BULL SHIT, you are most certainly a UPD hard Core supporter. Come on man/woman look at the figurs, spending, loans , trips, and in Two yes Two short years you are going to have a surpluss of KYD$25M PLEASE. Maybe in Jamaican dollars and even at that it will still be too much to have considering  the mess Government is in.

      WAKE up you, really????? . Then again everyone is free to say/write what they feel. Its call freedom somthing the Premeir don't beleive in

      I dam well Care

       

    • Anonymous says:

      I don't think they're biased at all. I only wish CNS would stop deleteing most of my anti-UDP anti-UDP cronies anti-Mckeeva comments that are obviously too "honest" to post.

      In fact CNS is starting to give me a complex ðŸ™‚   I didn't know I was such a ruthless bitch till I tried to write my true feelings about the UDP and thier losers on here.  CNS either thinks I'm completely tackless or idiotic…..hmmm may be the West Bayers will think I'm a good choice for the Priemer! lol

    • Anonymous says:

      Websites cannot be biased. Only the commenters can. The reason it appears to be tiltled against the UDP is that there isn't much the UDP supporters can find good to write about.

       

    • anonymous says:

      Unlike having your own radio show or tv show, this site is a free and open forum for anyone to post comments. Your comment was posted even though it made no sense. You should be questioning why the UDP supporters are not out in full force here making positive comments about the Premier. Maybe because they know better.

       

  14. Anonymous says:

    Wish Mr Bush would do my accounts or tell me how it is done – could be wealthy before year end!

    • Anonymous says:

      I wonder if Government have paid any bills lately? Isn't  that how he usually 'saves'…. stop paying

    • Anonymous says:

      You all keep making fun of Mac, but you know we are lucky to have a financial genius like him. You criticise him for everything but the day he is gone, we are going to be in a mess. I mean if Mac wantede a job he could go to Europe and get a job working as a Minister of Finance for Italy, Portugual, Greece, Ireland and yes, he could move George Osbourne out of the UK. Count ourselve lucky to have him, his doule dipping and spending on Nation Building is not a lot to pay for such wisdom and managing the country.

  15. I Care says:

    How  can this be POSSIBLE???? I am not an accountant but I don't think you have to be one to see a problem here. IS this Enron/Madoff accounting experts/consultants that the Government has hired to do this magic???

    Really Mr. Bush you have to come better, we are not all fools you know. If this is true then this was a Great Job by your government. Then if this is so the PPM did not leave us in a bad state of affairs as you cleam. Please show the proof and audited proof .

    I Care

  16. Anonymous says:

    We HAVE a $25mil surplus how…..because I say so.

    You want proof…then you must be a drunken devil worshiping bureaucrats trying to harass me. I say so so it must be so, and I saved money going to Cohen for the loan…despite what the figures prove…so there

  17. anon says:

    You mean weez nah broke?

    What a load of shit, must have hired the Enron accountants

  18. Anonymous says:

    In terms of the surplus, as far as let us wait I have no faith in the Financial Secretary, Mininistry/Minister of Finance, with respect to the accounting standards that is being used for this surplus it is spook economics, at the end of the day it will be oops sorry but the surplus is not really a surplus, as a matter of fact, in as far as, at the end of the day a deficit.  Well people if that is the case just blame it on the PPM.  Mr. Swarbrick please confim that surplus, as in my opinion you are the only qualified accountant in government service. 

  19. Merlin the Magician says:

    Fax to Stan Thomas:

    Dear Stan,

    Please forward the balance of $25,000,000 for ensuring that Cabinet approved the magic act that balanced the budget.

    The bank account number and all other details are the same as before.

  20. Anonymous says:

    If this is true, and I do believe that pigs can fly, then its because the last government did not leave a huge debt behind.  As we have no financials as usual, we have no way of knowing the truth.  I personally do not believe a word this govt. says.

  21. Bruk says:

    Meanwhile, somewhere to the south of Cloud Cuckoo Land, the poor continue to get poorer while the rich get richer.

  22. Anonymous says:

    I would like to compare the Budget for 2010/2011 to the actual for 2010/2011 and actual for 2009/2010 to see exactly which areas that the Ministries and Departments had increase in revenue and reduction in expenditure.  I hope the pension payments have been made and/or accrued.  Was the money that was drawn down from the loan to construct the schools spent or is this being recorded as revenue?  How much was received from dormant accounts at banks?  Don't expect to get this same amount for 2011/2012.  It would be helpful if we new some of these facts.

  23. Anonymous says:

    Let me get this straight. The two emergency loans last year to keep government running added up to 108 million dollars in borrowing. Mac claims he saved 3 million in interest by delaying the second loan. Then he proceeds 6 months later to dole out 10 million for Nation Building which included 4.1 million to the churches. Does this really make sense to anyone? Is this sound judgement and good governance?

     

    Let's ask two questions.

     

    First: Why is there no "Meals on Wheels" program in West Bay, the largest of districts. Those church kitchens that sit emply during the week could be put to good use cooking food for the sick and elderly.

    Second: Why is the Ministry of Education and Training sending out form letters to business asking for donations to support their before and after school programmes as well as to reward parents for getting involved in their children's school activities. When I grew up the reward was in getting a child who was educated and able to work for a living.

     

    That 10 million dollars could have supplied West Bay with 50 years worth of Meals on Wheels.

    It could have paid for the finest  after school programs for decades. There is no good governance going on here. Those listeners who call the radio to praise the Premier and this government are either put up to it or severely out of touch with reality.

     

    The Premier is hell-bent on the idea that devopment and building projects are the solution to saving Cayman. Will he ever wake up?

     

  24. Anonymous says:

    Cast your bread upon the waters and it will be returned to you seven fold. Obviously all of the churches have returned the money the Premier gave them with interest.

  25. Anonymous says:

    That should of course have been “CURRENT” LIABILITIES.

  26. AnonymousSick and Tired of the B...S... says:

    Just a quick thought. This surplus is the equivalent of a “Gross Profit” in a company’s Profit & Loss Account. What about the Balance Sheet – what is the figure for PAYABLES on the LIABILITIES side ???.

  27. Anonymous says:

    How can he possibly support these figures, when their have been no audited Financial Statements for Government for how many years ???- And why did these figures suddenly become available. We are back to the issue of the Emperor’s, or in this case, the Dictator’s, new clothes. What we need is a small boy to shout very loudly – “He is not wearing any clothes at all”.

  28. Big G says:

    How can a country with limited income turn a projected deficit of $30 million to a surplus of $25 million that's an extra $55 million in revenue with some serious cost cutting..which did not really happen as Mac and company flying all over…this is way creative accounting..Among other things I would say look at Government receivables and see how much it went up from last year….look at accruals I'm sure expenses were being paid from that account that were not even accrued…in other words pay expenses from the balance sheet accrual account and avoid increasing expenses on the profit and loss account….this is crazy I've never seen projections and actuals fluctuate so much…

    • Dred says:

      Hey look…is it a bird? Is it a plane? a rocket? NO. It's a pig!!!

    • Empty Chair says:

      Mouth can say anything, show us the facts, but we know this will not happen because the UDP (led by MacChavez) have changed the laws to allow them to "hide" the truth from us concerning the true picture of the countrys finances. Why do they refuse to show us the truth?

      Mouth can say anything, & until these figures are shown to us & proven then I refuse to believe the continued untruths & exaggerations!

    • Pitiful bloke says:

      Really? I will not believe this cxxp until it is proven because if nothing else we know that the premier can talk the good talk. He will tell us this bit of news now & in a few months "explain" to us why in fact it was not the truth. Let us all wait & see because we know the premiers track record already & I just do not trust anything he says!

  29. sammy sea says:

    Could it be that when no one was looking Uncle Dart slipped $25m. into the budget?

    Who knows!!

    • Strangers in The Night says:

      I listened to Foolio on the radio this morning & he amazingly said that the UDP had "achieved the impossible"! How foolish can Foolio get! You cannot achieve the impossible, so was he telling us in a backhand way that this announcement is in fact not true? You be the judge!

  30. Y U T E says:

    Hahahahahahahahahahahaha ohhhhhhhhhhhhhh me belly hahahahahaha. Yea, right!

  31. Anonymous says:

    Before I celebrate, I will await the audited books.

     

    I trust the Auditor General before I trust the premier.

  32. The Spin Cycle says:

    "That Bentley convertible is $250,000." "That isn't a Bentley… it's a Daihatsu." "It may look like a Daihatsu it's actually a smaller Bentley." 'It sure looks like a Daihatsu." "Are you calling me a liar?" "And it isn't a convertible." "You got me! You're right it's a hardtop. I'll reduce the price to $198,000. I must be nuts! This is your lucky day! I just saved you $52,000!" "It still looks an awful lot like a Daihatsu." "And you're still nitpicking?"

  33. Anonymous says:

    Wow from a $81 Million deficit, to a $25 Million surplus. I believe this because Iguanas have been flying around in West Bay. It is true, I saw dozens of them flying!

    • Anonymous says:

      They're following in their premeir's shoes.

    • Anonymous says:

      Didn't you see some pigs flying around in West Bay too?

    • Anonymous says:

      Wow! From a deficit of $81m to a surplus of $25m in two years in the middle of a recession.  Mac is a financial genius! Cayman could make some money by selling his services to other countries suffering from debilitating deficits.  

      But seriously, who is this man trying to fool? The people are not idiots and neither is the UK. Since neither the current 'surplus' nor the $81m deficit have been audited it puts both of them in doubt. Perhaps the deficit was never really $81m, or perhaps there is not a $25m surplus now. One thing is sure  – they cannot both be true.  

  34. Anonymous says:

    This surplus may well represent the truth, and if so, it is a great achievement and to be applauded. But Joe Public has been exposed to so much Government chaff, mis-direction, propaganda and overt legal abuse, that its inclination is to dismiss any such news as being the result of  a judicious massaging of the country's accounts. One person might call it cynical, I call it sensible.  After all, was not a bill  passed recently to relieve those departments, years behind in their accounts, from the legal requirement to produce  any  accounts whatsoever for their lost years?

     

    There comes a point when you refuse to believe anything at all put out by our Government's lone spokesman, because experience tells you that you'd be a fool to do so. This is  the lesson of "cry wolf", no one pays attention when they really should, and whose fault is that?

     

    All we ask for is honest and judicious government, carried out in the interests of the people. Nothing more, nothing less. And I reserve the right to disbelieve anything I hear about the activities of the Government  that, like all advertisments, "speak well of  it,"  when those words emanate from the mouth of one who is trying to deflect rightful criticism from a cheated and angry electorate.

  35. Anonymous says:

    No one with any good sense believes this.

  36. ubelievedat says:

    TOTAL BULL CRAP!!!!

    unaudited accounts for years, no true financial record-keeping, a failing & evaporating economy, basically no gross domestic products…………..

    WHERE DID THE MONEY COME FROM?????????

    Ooooooh!!!! you mean the CI$18 from DART to make the books pretty!!!!!!

  37. sammy sea says:

    HUUUMM?

     

    Could it be that Uncle Dart secretly  stepped in, to erase the deficit and bail us out?

  38. Anonymous says:

    I'll wait for the audit.

    • SMH says:

      We might be waiting a while.   I have a feeling Mr. Auditor General will be went on with one way ticket out of Cayman pretty soon.

  39. Anonymous says:

    Good job!

  40. Dred says:

    IF IT ACTUALLY EXIST….and that is a BIG IF. It's because he taxed us into oblivion….

    My best guess is he "adjusted" things into a better light….I do not need to expand on that. It's kind of like one second 5 million surplus next minute 81 million deficit. Now you see it now you don't.

    I'll believe it when the AG says it's accurate…..not BM

  41. nauticalone says:

    Note the term 'core/central Govt." And remember that CI Politicians well knows about "creative" accounting.

    Personally i have more faith in the Auditor General and "Audited" accounts!

  42. Anonymous says:

    Can civil servant now have back their 3.2% and the back dated amounts?

    • Anonymous says:

      Yeah sure just what's needed to put Cayman back in the bottom of the hole…Why not spend the rest up on Free medical benefits, and doulbe dipping retirement plans..

  43. Anonymous says:

    The timing of this announcement is uncanny.  I sincerely hope the Auditor Generals office can confirm this after carrying out their audit.  But I wonder if all the outstanding bills and liabilities that government owed and have been stalling on paying had anything to do with this, or whether they have actually, finally been paid.  If we're in a surplus and all outstanding and overdue bills are bang up to date, then I congratulate you Mr Premier – for this one thing.  However, even though I am not a PPM supporter, I really do think it is in really bad taste to say the things stated in the final paragraph of this CNS article.  The badmouthing on both sides needs to stop and you guys need to work together for the betterment of Cayman.

  44. Anonymous says:

    yep just run those figures past the auditor general first……..zzzzzzzzzzzz

  45. Anonymous says:

    OK, iI dont know about you guys, and I might get flamed out on this, But this government is known for twisting and covering the real truth. Anything from bush  and his party is to be questioned in my eyes..   If this end up to be true, then cudos to him and his"crew", but my gut tells me different.

     

    I hope you all remembe when the last government was in power, their fco told them they were in the green with a surplus too. When this administration came in all of a sudden they were in the negative.. so what gives? they can make money dissappear and reappear like magic.

    Just dont know how to trust them anymore. 

  46. tru dis says:

    Show us the dam facts.  And while your at it answer the DAM QUESTIONS.   Otherwise it would be better if you would not keep telling us what turnsout not to be true.

  47. tru dis says:

    Ha ha ha has….Good one.  With all thats happened lately,  Absolutely no financial statements, records and a new law that makes it OK, Bush totally screwing up on the Cohan deal (and not telling anyone) NOW he still expects everyone to belive him.  Now!  Wow!  This man has some balls!  Not much in the brain department but WOW!  Considering his audience he will most likely get away with it again.

  48. Anonymous says:

    Why stop there? Why not declare a 500 billion surplus? We all know it's done on the back on a napkin at happy hour and never audited.

  49. Anonymous says:

    Where's the investment you speak of Mr. Bush? As far as I can see not one project has taken flight since you came to power. All you've done, Mr. Bush, is fill the government's coffers at the DIRECT expense of every citizen — especially the poor– in the Cayman Islands.   Instead of stimulating the economy to gain revenue, all you've done is to raise every tax under the sun to claw back a few million to make the books look good.  Sound economic policy?  We'll see. 

  50. Boring accountant says:

    Bush refers to the provision of timely information which is odd because the Government just did away with quarterly financials! At the same time the TCI Government has just introduced quarterly financials. The FCO must have serious reservations about just what this financial genius and former bank director is planning next. Any guesses anyone.

  51. Libertarian says:

    A surplus… but no jobs yet, an ailing economy, and a big government that feeds off the private sector like a vampire. Surely there is alot more to be done to better our living conditions.

    • Anonymous says:

      I mostly agree with you, but there is a common misperception that must be addressed:  Beyond public works and administration positions, Governments do not generate "jobs".  Rather, they reside on the other side of the equation taxing the private sector.  What Governments can do is stimulate the private economy through consistent and accomodative policies.  This is a concept that is as lost in Washington as it is here.  Governments do not create jobs by spending, and politicians and media should not pretend that it is their responsibility to do so.  Only consistent and accomodative policy will enable private sector to flourish and hire to the extent that there is demand.  That said, the current erratic administration statements here are so inconsistent and divergent that the drivers of business should not be expected to rush into expansion, if and when that may become necessary.  

  52. Village Vicar says:

    This is more smoke and mirrors. Macmisick has merely delayed certain spending until the next fiscal year. A classic example is the new mosquito hanger that was started by Hadsphaltic until they went bust in October last year. The construction has never been restarted and just put on hold whilst other projects remain on hold. This guy has no idea about finance and is now studying to be a magician. Let’s us hope he is successful in making himself disappear!

  53. Anonymous says:

    I don't believe a word this dude says or a single figure he quotes. As far as I am concerned, he makes this s*&% up as he goes along. Funny about the timing too, eh?

    Curiouser and Curiouser……