Deficit change down to cuts
(CNS): Although government revenue did not increase significantly in the last financial year, reductions in operating expenses of around $17 million have resulted in smaller deficit for than government had predicted earlier this year. While the UDP administration had originally called for a $5 million surplus when it brought its first full budget, as the financial year drew to a close it revised those expectations and predicted a deficit of as much as $45 million. Unaudited figures now reveal, however, that as a result of spending cuts the actual deficit is going to be closer to $15 million. In the Legislative Assembly on Friday the premier said the results were taken from management accounts prepared by the Treasury.
“The financial results and positions reflect what ministries and portfolios have posted in their general ledgers for the years ended 30 June 2010 and 30 June 2009,” McKeeva Bush told his legislative colleagues following some speculation regarding the results. He said confirmation and discussions had been held with the various ministries and government companies and the results were both meaningful and robust.
Although the accounts have not been audited by the auditor general yet, Bush said the figures form the basis for the preparation of core government results that will be included in the consolidated entire public sector financial statements that are audited by the Auditor General’s Office.
The premier said although there would be expected changes during the process of auditing, he said government found it “desirable" to release the preliminary figures.
Setting out the latest figures, he did not outline where the cuts had been made but noted that the revised budget had anticipated that government would spend $502 million in this financial year but these figure suggest government actually spent around $485 million. He also said that the anticipated losses by statutory authorities and government companies of around $2.5 million turned out to be around $1.5 million.
Government revenue had been predicted to be $562 million when it brought its 2009/10 budget but it revised that forecast down to $492 million, so the revelation that government earned some $502 million in the last financial year means government earned $10 million more than anticipated.
According to a written answer given to the opposition this week following a question submitted in the previous sitting of the House that was never answered in the chamber, most of government’s revenue earning routes took in less than anticipated. Earnings from duty, for example, reached only 85% of the expected revenue, while the mutual fund and securities sector both exceeded expected earnings.
Although it was not clear where exactly the cuts were made, Bush said this year’s personnel bill for civil servants in core government amounted to $228 million or 47% of the operating costs. In the original budget government had expected to spend $244 million on pay and benefits so had made savings of some $16 million even before the 3.2% rollback was introduced in July of this year.
Category: Headline News
wow from 81 million deficit the PPM left us with to now 15 million… that’s a good chop of 50 million off the block!
good job!
Nobody has verified any of these figures, and it would not be the first time that a politician (anywhere in the World) has manipulated budgetary figures. How easy would it be to initially declare a grossly inflated deficit , blaming the previous government for poor fiscal governance, so that when some figures are finally available the "apparent" improvement is much greater than is the case.
Whatever the situation, why would anyone have any confidence in these statements. Last Wednesday the premier, in the L.A., categorically stated that the invitations to tender for the CI$155million loan on the Central Tenders Committee website, and an advertisement in the Caymanian Compass, had also included secondary requests to tender for Cayman Airways financing, and the consolidation/management of existing government borrowings.
Subsequent enquiry by the "Compass" revealed that in neither case had the invitations made ANY reference to Cayman Airways or existing borrowings – seems like an amazingly short memory span…………….
LMAO
the deficit amount was projected and obviously not an correct number. Remember the PPM saying they didn’t know how Ken Jefferson came by those numbers for the deficit. Someone is fooling someone and hoping that we are all fools!
Don’t forget that we are taking out a loan for over 100 million which means WE ARE STILL BROKE!
The first thing that shouldbe cut is waste, but there is no evidence that the around the world luxury travel with friends and family and the personal servants and the home improvements and the fancy vehicles have been cut. I will wait to see the actual numbers to see whether any of these claims are more than smoke and mirrors designed to deceive the public.
And when they actually pay their bills, what does the deficit become then? I know where my books stand, and they would really be looking better once I get my cheque from gov’t that they owe for my services.
ppm is crying now, udp is doing better than them
The question is from whence commeth these figures when the auditor general says less that half the agencoes had finsihed their june year accounts by the legal deadline of August 31 some 62 days after they were closed.
The second big question is what were the payables when these expenditures were allocated any fool an save money if they do not pay their suppliers.
CRITICS AGAINST THE PREMIER:
How long will you criticize?
The proof is in the pudding
🙂
Indeed the proof is in the pudding. The problem is that we have only Mac’s say so that there is a pudding, and based on his track record that really is not good enough.
I am not clear how an $81m deficit becomes a $15m deficit if there is only $17m reduction in spending and there has not been any appreciable increase in revenue. Perhaps he has a special calculator.
Your reply explains a lot.
If these figures are correct, then good for them. But since the revenue is showing a shortfall, then cut the expenses; we should all practice the lesson of not spending what we DO NOT have!
And if they cut out the constant world travel there may not be a deficit at all