Multi-year budgets deferred

| 20/11/2014

(CNS): The finance minister has said that he does not expect to introduce the planned multi-year budget system or switch the financial year until the beginning of the 2016/17 fiscal year – the last financial year of this current administration. As government battles with public finances and the multiple problems surrounding governance, as well as proposals to downsize the civil service, Marco Archer told CNS recently that the idea to introduce government budgets exceeding the current 12 month span will not come until the end of this term. Government will be delivering is strategic policy statement outlining the budget requirements for 2015/16 next month and the minister said plans to bring in multi-year budgeting have been deferred.

The changeto the financial year dates and the multi-year budgets require a change in the Public Management and Finance Law. While the current government has been working on a number of amendments to the legislation relating in particular to the financial reporting issues, Archer said that the changes won’t be brought to the Legislative Assembly much before the end of this current 2014/15 year, which leaves little time to begin the multi-year budgets or a switch in dates.

Archer said, however, that introducing an 18 month budget in the first instance in the 2016/17 financial year would cover the problem period that exists for any new administration coming into office just one month before the end of the financial year and over the need for the interim budget.

This would then pave the way to introduce the multi-year budgets and switch the financial year in line with the calendar year in the next tem if the Progressives are re-elected, or allow any new government breathing room to develop its policies without the pressure of immediately needed to deal with a budget.

Archer said during last November’s policy statement that government had planned to move its fiscal year (which currently runs from 1 July through to 30 June) beginning on 1 January 2016 and that it would simultaneously introduce multi-year budgeting, with the first 18 month budget delivered at the end of this fiscal year followed by a two year budget on 1 January 2016.

Despite the complexities and expense of changing the fiscal year, the finance minister said it would bring numerous benefits.

However, those plans appear to have been shelved and instead Archer will be focusing on introducing the first 18 month public fiscal period in June 2016.

Category: Politics

Comments (19)

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  1. Anonymous says:

    Multi year budgets? Hell, we cant get one year right and somebody better ask how much is "multi", cause damn, that sounds like a lot.

    • Anonymous says:

      We are getting the budget just fine. You are thinlng of prior years' accounts which are unauditable.

  2. Anonymous says:

    As I said before give this guy a map and he couldn't find his way home or to the PPm Office.  What a sad day when this bunch was voted in presumbably.  LOL

  3. RP says:

    This is how I read this article:

    Ppm can't have a multi year budget that ends before election because if the budget is not met then ppm takes a risk that they will not be voted back in.

    Solution? Put an agresive budget in place at the end of PPM term and then campaign on the promise that PPM has a plan to met this budget if re-elected and get the govt out of the financial mess it is in. Look how well the country will be financially in 3 years if you elect us again.

     If PPM is not re-elected then this 3 year budget will be the problem of the next bunch of politicians. 

    2017 election positioning at its finest.

    • Anonymous says:

      15:54.This is how I read this article: PPM is trying to get the Government's Financial Reports up to date before introducing multi year budgeting.Sounds like a good idea.

  4. Anonymous says:

    everything that PPM does can be described as rearranging the deck chairs on the Titanic. The good ship Cayman is sinking – the Financial industry is shrinking by the minute. Shetty hospital has 2 patients on a daily basis. Address these issues- find ways to keep the money here . Not focus on admin rubbish- there'll be nothing to budget for by the time PPM is done!

  5. Anonymous says:

    More big talk from a little man saying nothing of consequence that people want to hear nor does this latest decree do anything to help us with our real problems

    • Anonymous says:

      09:16  You have chosen to discriminate against Marco ,because of his stature.Guess who looks little now.Shame on you.

  6. Knot S Smart says:

    Rome was not built in a day – at least thats what the rumour says…

  7. Anonymous says:

    you elected him now deal with it perhaps a real business man could replace him in the next election.

    He was a token caymanian when he was hired at MOOZ and given the job of doing statistics on the CIG for which there is no real information available

    His degree is worthless University of liverpool paid for by the tax payer HA HA HA

    • Anonymous says:

      What a nasty post. And untrue. Shame on you. I hope you're not Caymanian. We've had one 'Businessman' in that position and we see where that got us.

      Marco is bright, prudent and very sound.

  8. Anonymous says:

    He needs to address the damn cost of living (CUC, GAS,FOOD) the average cost of fuel as of Nov 14th is usd $ 3.41 why the hell aren’t they trying to source fuel at an better rate because of fuel every frigging thing is affected CUC is one of the biggest damn thieves on this island everyone talking about these robberies why do they think this is happening huh and don’t bother about lazy people these people are becoming very desperate (some lazy asses out there yes) but when there families having to chose between paying cuc and buying food mortage or rent evictions water bills they need to pull their heads out of their asses and do their damn jobs stop pussy footing talking crap every minute. Fed up!

    • Anonymous says:

      Agree with you.  How can a person receive a bill from CUC for over a hundred dollars + for a month using no air conditioning all year, tiny little fridge, two lamps and a TV?  Water bill is less than $20 and use more of that than the electricity…?  

    • Anonymous says:

      I think they should take the expected surplus and eliminate the duty on fuel.  It would be a huge boost to everyone, consumers and businesses alike.

    • Anonymous says:

      OK! Now tell us how you really feel!!!!!! Wow!  🙂

    • Anonymous says:

      01.12- you need to get off the fence on that one…

      Seriously, but more politely, you have a point. Fuel prices are dropping everywhere else and rapidly, so why aren't ours? Same for electricity-cheaper fuel prices means cheaper electiricty right? Not in Cayman!!

      Last time I came across similar situations in other countries, they were caused by things called "Monopolies" and "Cartels", neither of which do any favours to the consumer.

       

      It will never happen, but maybe we should all agree just not to use electricity for one day in a protest? Or stop using our cars one day a week (1/7th of sales lost, less mileage is going to hurt) until something gets done. People here sometimes forget that these bodies only exist because we want their product and pay for it. If we don't, they are out of business. Alternately, no one pays their electricity bill…what are they going to do, prosecute the whole island? Or failing that go to the UK for a judicial review of whats happening here (and lets include the supermarket companies too, shall we?). There is plenty that can be done, if people so choose.