(CNS): The overall review of the country’s public sector, which is being conducted by the Deputy Governor’s Office, continued this month with the start of the second phase on Monday. The first phase of the review, which was a condition of the approval given by the UK for the Cayman Islands Government to borrow outside the parameters of the Public Management and Finance Law, began last year and has now been completed, Chief Officer Franz Manderson has confirmed. However, so far only four government departments have been examined: Public Works, Prisons, CINICO and the Department of Tourism. A report has been completed, and although it is not yet a public document, Manderson stated that there were plans to release the report covering the first phase.
The review of the entire public sector was originally supposed to be completed by the end of 2009 as it was one of the conditions made by the former overseas territories minister, Chris Bryant, when he agreed to allow government to borrow to balance the budget at the end of the 2008/09 fiscal year. The December deadline was, according to government officials, extended to March. However, only four government entities have been examined, despite being six months past the second deadline. The review is still seen by the CIG as part of the conditions regarding the borrowing requirement, Manderson stated in an email to CNS this week.
When, in May of this year, the new UK coalition government approved the premier’s three year plan to address the country’s deficit and long term spending problems, a reduction in public spending was part of that commitment and the civil service review was said to be the tool that would direct the cuts.
The CIG said in its long term national financial plan that public expenditure would fall from the $532 million for core government in 2009 to just over $462 million by 2013 — eliminating the country’s deficit. Bush told the Legislative Assembly in June that the country’s fiscal recovery would be achieved by expenditure control as well as growth stimulated by increasing economic activity.
The three-year plan points to major public sector reform and government said it planned to use the results of the internal civil service review to cut operating expenses. Government said it was committed to this “major public sector reform”, which would include the implementation of many of the recommendations of the Miller Commission report and, in particular, “a sustainable reduction in government’s operational expenditures” and improving efficiencies. Government said it would implement the recommendations resulting from the review of various civil service departments.
“The Government will … be incorporating the results of the civil service review into the overall implementation plan,” the report reads. “The objective of formalising the public sector reform process is to ensure that the targeted reform benefits which will impact this three year plan are achieved for this plan as well as over the medium to long term.”
However, it is now not clear how many more departments within the civil service will be reviewed or when the results of the review which government intends to use as a guide to cut spending will be completed.
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