CIG on track to pass targets

| 21/10/2014

(CNS): Government earnings were over $2.5 million more than expected and spending was down $5.5million less than projected in the first quarter of the 2014/15 financial year. As a result the public purse is on target for a major surplus at the end of this year if government can keep spending down and the economy growing. Already aiming to have almost $121 million left next June when it has paid all its bills government may do even better as it battles to reach the FCO’s aggressive targets to ensure Cayman gets back on track with the management of public finances and debt ratios. With no new debt being incurred central government will repay $25.4 million off is debt load before the year end and it is also expecting to cut overdraft interest and fees to zero.

“At 30 September, 2014, the Government's Operating Bank account balances totalled $67.1 million and the Government is confident those balances will remain positive throughout the entire fiscal year,” the premier announced recently, when he reviewed the country’s finances in his state of the nation address.

Crediting his finance minister who is in charge of the public purse strings, Alden McLaughlin said Cayman was lucky to have the “skill and zeal” of Marco Archer was creating confidence in the economy. “Investors like certainty, and Minister Archer has certainly brought this to the management of the public finances,” McLaughlin said, adding that it was no mean feat to achieve Budget approval from by the FCO on first submission

Meanwhile, the statutory authorities and government-owned companies also enjoyed a positive first quarter of the year collectively experienced an operating surplus of $1.7 million, a million dollars more than expected.

McLaughlin said government has worked hard every day since being returned to office some 18 months ago, to restore stability to the country and the economy.

“Our economic policies are working and the economic indices are pointing to encouraging growth,” McLaughlin claimed. 

With overall economic activity in Cayman Islands growing by an estimated 2.2 per cent in the first six months of 2014 he said that in the first quarter, the GDP grew by 1.5 per cent while during the second it is estimated to be at 3.3 per cent. “The growth rates are the strongest estimated so far for the country during the post-2008 global financial crisis period,” the premier stated.

He added that economic growth had occurred in several sectors including wholesale and retail trade; hotels and restaurants; transport storage and communication; real estate, renting, business activities; and construction.

 

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Category: Politics

Comments (36)

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  1. Anonymous says:

    PPM  Audited accounts before you do anything else.  Other wise how can we trust your figures?

  2. The REAL Truth says:

    "McLaughlin said government has worked hard every day since being returned to office some 18 months ago, to restore stability to the country and the economy."  He should have added, and we only lost $1 billion dollars some where doing it.  This is Caymanian run government at its very best.  If this house isn't cleaned soon it will start to fall down by itself. The end is comeing and its already in plain sight.  If the UK doen't step in its going to get very ugly.

    • Anonymous says:

      You are so eager to blame the PPM govt. that you didn't bother read the article. This did not occur in the last 18 months:

      "Examining in particular the financial years ending 2011 and 2012, he said that the audits of the ministries have raised “significant concerns about the governance and internal control environment.” 

      Who was the Premier and Minister of Finance, Tourism and Development in those years?

  3. Anonymous says:

    mac ran a number of surplus's with his pretend budgets…..

    fair play to the ppm for doing nothing special and keeping things the same….

    but in the real world all businesses are slowly dying with the the do-nothing approach of the ppm……

  4. Anonymous says:

    Robbing Peter to pay Paul sums it up. In the real world cayman is busted, bankrupt, broke so many unfunded liabilities they have  just closed there eyes to them. and tell everyone its ok

    even going as far as to say there is a surplus.

    Anyone whom thinks otherwise has been smoking some medical. not that bushweed

  5. RP says:

    The targets are real but the comparatives, being the actual results are not only unaudited but rather unauditable.  

    Mr. Archer please produce an auditable set of accounts for this fiscal year.  We are tired of paying taxes not knowing where Our money goes. I don't expect unqualified opinions but I do expect a set of accounts which is auditable by the auditor General. I am willing to settle for audit qualifications but at least we know what is being qualified. Once there let's work on rectifying the audit qualifications within the next two years.

    i know you are capable and willing so let's get the ball rolling.

  6. Bollox says:

    I am somewhat sceptical.

  7. Judean People's Front says:

    Oooh, he's making it up as he goes along.

  8. CrabClaw says:

    Maybe they could actully start hiring somemore theachers, and firing the ones just holding spots.

    • Anonymous says:

      Have you asked why they haven't released for underperformance the teacher(s) you don't like? Money ain't the issue.

  9. Anonyanmous says:

    This is good news for Social Services and bad news for the government if they don't get people into jobs.  Jobs and employment opportunities for Caymanians will complete the package.  Money in the bank is of no use to poor people if they don't have access to it by way of jobs. 

  10. Anonymous says:

    "Investors like confidence"?  Who are you referring to?  

    What "investors like", Mr. Premier is to be able to hire the people they need WHEN they need them.  That means government presenting either a Caymanian OR a work permit.  

    Not being able to hire people (Caymanian or otherwise) when you need them is pretty much of a deal-breaker for a business.  

  11. Anonymous says:

    Once historical reporting is supported by unqualified, audited financial statements then I will believe it.

  12. Anonymous says:

    How can anybody believe in a surplus when 1 billion dollars is unaccounted for in the AG's recent report?

    • Anonymous says:

      Who's the more foolish, the fool or the fool who follows him?

    • Anonymous says:

      1 billion from McKeeva's term. SMDH. 

    • Anonymous says:

      The accounting issues have to do with not knowing what government's money was spent on.   It is rather simple to account for how much money the government has spent, how much cash they have on hand, and how much debt they have outstanding.

      For some reason people have to restate this inaccurancy everytime the government posts positive economic news.

  13. Anonymous says:

    They say the same crap every year until the truth comes out..Dey must tink we idiot.

    • Anonymous says:
      Most Chiefs Officers, deputies and CFO's could never get a similar position or keep it if they were in private sector providing false accounts. 
       
  14. And Nother Ting says:

    Great numbers mr. premier and yes the Minister of finance is a credible guy, but, please talk about the people who are losing their homes, can't pay their electricity and have no jobs. Talk about the stupendous rise in crime and the crippling effects it's going to have in YA  GDP if not curbed now. Come on all YA supposedly hard work is naught if the quality of life is draining away in the swamps. Can't believe these people, these so called kmas leaders.

  15. Anonymous says:

    We need jobs not pretend surpluses

  16. Anonymous says:

    Well done to the FCO & ex-Governor. If the FCO hadnt started getting more invovled & we'd not had a change of Govt & the removal a a certain MLA, the finances would be in deficit & we'd be in a sorry state but still being told things were rosy. But I bet no one sees this & votes him back in to carry on as before.

    With this surplus please invest & spend it wisely, & help the old & poor.

  17. B.N. Onneste says:

    It sure looks good on paper….  but wait!  Wasn't there a similar statement made by the previous administration?   Good luck, Mr. Archer.

  18. Anonymous says:

    Its easy to pass targets when you can move the goal post. SMH, the government is as trash as my nieghbor with thier barking dogs and bushes overhanging on my property.

    • Anonymous says:

      The bushes overhanging into your proprety is concidered your property and you are resposible for cutting it down from your side. Just like when my neighbors magoes hang over they are MINE!!! HAHAHAHAHAAHa!

  19. Anonymous says:

    Alden is a funny guy his speech did not inspire confidence in his leadership or the progressives it was a damp squib! 

  20. Anonymous says:

    Please show us fully audited accounts supporting these claims.

    • Anonymous says:

      You obviously don't understand what audited accounts are. An audit occurs after the financial year has ended and final accounts have been produced. The current accounts for the current financial year he is referring to obviously cannot be audited at this stage, but they are nonetheless useful to track progress and take any corrective measures if we are going off track.  Capiche?

  21. Anonymous says:

    Another day another fantasy by PPM. Cayman going down the drains and this lot are in denial

  22. Bean Counter says:

    This surplus is as real as the unicorns in my backyard. Until the audited accounts for CIG are verified by the Auditor General without the usual a series of qualified opinions which means that the quality of the data cannot be trusted (ask any CPA or ACCA) it's all just numbers on paper and more political spin. 

    • Anonymous says:

      ha! speak for yourself, the Unicorns MY backyard are real. Just like the Tooth Fairy, Santi Clause and the Easter Bunny.