Historic spending revealed
(CNS): Despite the premier’s claims thathis government has made significant cuts to public spending, the Annual Plan and Estimates reveal that government intends to spend close to three quarters of a billion dollars over this financial year. When government’s core operating expenses are added together with spending on government companies and statutory authorities, it will spend a record $713 million, according to the now published budget documents. However, as a result of the UK’s refusal to allow more public borrowing and in order to achieve a significant surplus, government is forecasting the collection of a staggering $834 million in fees and taxes via the entire public sector.
The government is projecting a surplus of some $82 million when the operating expenses and anticipated revenues of the entire public sector are taken into account.
As the legislative process on the budget continued Thursday, there was still no word from the UK that the budget currently under debate would be approved. However, government has now published the relevant documents that contain the spending and revenue earning statistics on which it has based its spending plans for the final year of this administration.
The budget documents reveal that there are few major cuts in public spending and many line items have been increased, with expenditure in some areas outstripping that of the last financial year.
Cuts in the fire service, road maintenance, services at district health clinics and spending on tourism marketing have been outweighed by some significant increases in other areas. The Turtle Farm subsidy has increased by $1 million on last year’s forecast and the premier’s National Building Fund has also been boosted by more than $1.5 million over last year’s allocation, standing at over $4.5 million compared to the $3 million allocated to it in 2011/12.
According to government’s revenue projects, core government expects to collect some $105 milllion more than it collected during the 2011/12 financial year.
Based for the first time on a projection of 75% compliance, as opposed to the 100% projection in the past, government is forecasting the collection of an extra $10 million this year from bank licences, an extra $9 million from work permit fees and a further $12 million in duty. It is also hoping to raise close to $20 million from new fees relating to directors of offshore companies. A new departure tax is expected to generate a further $3 million and an increase in tourism accommodation fees is a forecast to bring in an extra $3 million.
Legislators will begin examining the budget in more detail during Finance Committee, which was expected to begin Thursday evening.
Category: Politics
some of the best blogs I have ever read
Which blogs are those? Do you mean the COMMENTS posted below, on this NEWS FORUM? I do wish people would use the right terminology.
$20m from directors fees will not happen. DMS is the largest provider of these services and I can not see Don Seymour willingly paying over the bulk of this from his business or his clients. Placing further costs on the estblishment and operation of hedge funds in Cayman will only drive the business away leading to less direct revenues raised from company registrations and CIMA fees and less indirect revenues from the legal, accounting and other financial services companies and their employees reliance on this business.
Currently listening to Rooster and find it sad that listeners are calling in to thank the government representatives for explaining the current budget issues.
Why should they be thanked for coming on to "explain" the complete bungling of this process, make excuses, point blame at the UK as well as the opposition and independent reps?
We owe them thanks for trying to make sense of this mess?
I just don't understand why people keep bowing and scrapping to this government.
Cayman is committing suicide in front of our very eyes.
It is already damaging its private sector, which simply does not have the funds to support the Goliath public service riding on its back.
Surely this is not what Caymanians really want.
Borrowing money and mortgaging its future is also a blueprint for disaster even it the UK government would allow it.
Cayman must either live according to its means, or simply go down the drain.
or 853,000,000 USD- mind boggling in a country with population of 25,000 local and 25,000 foreign people and territory of 102 sq.mi. 17,000 per person, including new borns, or 34,000 per a local person. It should be reorded in Guinness World Records book.
The premier is staisfied to know that all those blogging nonsence and calling him names are expatriates. Stay undercover.
I bet he can't spell satisfied either.
I understand that McKeeva's UDP Budget will now have an $82mio Surplus, if this is true, has any bills been paid for the last 2 months? I could have a surplus every month too, if I don't pay my bills.
If he says yes then no.
The economy of China is slowing down, Europe is in a financial crisis, the USA is limping all the major economies are in trouble, the world is on the brink of a depression if we want to admit it or not. Yet these heroes in Cayman that is forecasting a $82m surplus this is crazy. To those who Caymanians young enough try to go back to school choose a career outside of the financial industry and law because very soon there will be no jobs in either sector. The financial industry is about to hit rock bottom and don't be fooled that it cannot or will not happen. I just read in a leading global financial publication that tax shelters the world over are going thru some major reforms that will only leave a few with very little advantage to those who seek to avoid paying taxes. Where will this leave the Cayman Islands? we had better begin to look for other industries because due to the cost of doing business here many in the financial industry will be forced to look for more cost effective jurisdictions. It is now decision time. The financial industry is a done deal and the government need to stop increasing fees on them and lower the fees if Caymanians and expats are to continue having jobs and living the lives that they do.
Don't know if the USA is limping, but my stocks are up 26% YTD and 37% for 1 year. keep limping
Historic spending, lying, disrespecting, incompetence, and vote buying. But now its all "honorable".
We getting fairly close to a billion dollar budget.
No wonder McKeeva is floundering. He can't count that high.
There is no fiscally responsible strategic focus behind the way Government is operating, It is all vote pleasing and job maintenance (the latter not being entirely undesirable, of course). I was startled to learn today after hearing a Radio Cayman broadcast that "our experts" at Hazard Management (civil servants of course) were "watching Isaac closely". Really? On which of the very many online up to date weather sites? And what else do they do the rest of the year when we have no storms? Oh yes, watch out for earthquakes, tsunamis, petroleum spills and volcanic activity That must keep them on their toes.. Then I learned that we have a Met Office (don't know if that's what they call it), also watching Isaac closely. Astonishingly, we have over ten civil servants in our Met Office. Yep, ten plus. In this high tech age of satellite TV and cutting edge web sites do we really need these expensive civil service positions? What can they possibly say that all the other global TV and computer weather channels haven't already said. I'm not saying cut them out right now – and put people out of work because there is no private sector job for them – but the long term plan should be don't fill any posts, Just let the whole department wither away naturally over time. But the civil service management just does not think like that. A post becomes vacant? Jesus, let's fill it as soon as we can, so we are "up to strength".
O we will mNeed to hire at least 10 more to man the Doppler radar station we do not need that will have the added benifits of not ever allowing us to utilize large scale wind power.
Stupid short sighted ignorant.
anon 0436 do you realize that the radar does not require additional staff outside of techs to confirm it is working well. Before you go and make such comments you should check these things.
But you have to remember, Anonymous 10:37, whether someone is required does not enter in the CIG planning…… or hiring.
"…does not require extra staff OUTSIDE OF TECHS to confirm it is working well". So, 10:37, in other words, extra staff then, no true???
20:47
"There is no fiscally responsible strategic focus behind the way Government is operating"
Is this statement in regards to the UK Government ? who have lied to their people about their budget…. 20% cut in salary, lay off of 5,000 public servant. Just last month, borrowed 600 million pounds, to bolster their economy. And a projection borrowing by the end of their fiscal year, will have a further 36 Billion pounds added on to their debt.
Give me a break! we not asking the UK for a dime! we are in austerity times also, and need money to operate the country.
In regards to the bloated public servants here in Cayman . Accept Ellio's ingenuity… E- business.
11:12: Why on earth would the poster who spoke of the way Government was operating be referring to the UK Government? We are living in Cayman! Why do you rant on about the UK Government? Who gives a toss about what they do to their people (other than the people themselves, of course). Most of us are worried about OUR OWN Government's mishandling of things, not the UK Government's.
I'm not sure what "Ellio's ingenuity" would do for "the bloated public servants here in Cayman". It sounds like they need to diet and exercise.
The Government is projecting a surplus of $82m. All previous projections of this Government for the past three years have been figments of the imagination. The AG has consistently referred to inaccurate figures which appear before him for an audit. On the other hand the financial community always bear the brunt of increased fees to maintain an ever expanding and ineffective civil service. In the meanwhile the competition in the form of other financial centres are bemused and will take advantage. Cayman really needs a leader and not a dictator who fails to comprehend the facets of it’s financial industry.
Over the past two or three weeks, I have posted on my blog several commentaries on the Public Revenue estimates in the 2013 Budget, and also some suggestions on how Public Expenditure might best be cut. Rather than repeat the commentaries here, I invite CNS readers to check out the blog. You can find it by Googling "Barlow's Cayman".
This is Madness, can you just think what would happen if this Megalomanic Meathead had his way.
Dear Peanuts,
Yes, this is madness, but it seems the "Megalomanic Meathead" is ALREADY having his way.
Goober
Cuts
Fire service, road maintenance, services at district health clinics …
More money for
Turtle Farm subsidy has increased by $1million on last year’s forecast and the premier’s national building fund has also been boosted by more than $1.5million over last year’s allocation standing at over $4.5million compared to the $3million allocated to it in 2011/12.
Oh please, this is beyond a joke and speaks volumes about this man's priorities. I hope your houses don't catch fire, your roads will be full or (yet more) potholes and standards at your local health clinics are going to drop even further just so the Turtle Farm can be subsidised and Mac's building fund paid for. These are essential services which need more money, not less.
WAKE UP CAYMAN, especially those BAYERS still loyal to McKeeva!!!
Education budget frozen. Sorry, but when you talk about nation building…….. that's teachers, educators, education at the forefront……..
Big Mac has grasped politics 101: Keep your voters stupidm relying on your for their food, and easy to manipulate. He cuts education budgets while we have a horrible literacy problem (don't even get me started on numeracy or science) and yet says that he is going to give money to those students that "Don't qualify" for scholarships….Sorry, but there are reasons kids do not qualifiy and when I was growing up it was simple: You want to go to college? Get straight A's and get a scholarship, you don't and you will have to work to pay for school. Wow, what a concept! A REAL concept.
However, our politicians WANT to promote an entitlement mentality and relying on government. This is where their power comes from!!! It is hard to take away all that free money….Your civil service and 8,000 people on the dole make up the entire voting population….HOW CAN YOU STOP 8,000 Civil Servants and 8,000 people on Welfare from not voitng for their supreme benefactor? 16,000 Caymanians are blessed by big Mac's graces and nation building fund (the others are cronies with contracts…the man has the island locked on needing him.)
Yup, Mac got it right. He got them right in the pocketbook all the way to our downfall. Too sad, too bad.
22;58
What you fail to understand, its all back to slavery mentality.
These already educated fools don't want to see the rest of Caymanians and our residence prosper. so to keep them down, don't educate them…Plain and simple! It baffles me, why any one would want to hinder their people from getting an education.
Madness. Unsustainable. Almost half that budgeted amount of expenditure relates to CS salaries. So the tourism and finance sectors have to carry the can, but will pass all the effects on to Joe Public. All while the bloated public sector remains overpaid, over-staffed and under-worked. Surely the silent majority in Cayman must now rise up in revolution, and take down this tinpot dictator, before he bankrupts the country.
The silent majority.? 9000 people are receiving Goverment largesse, 6600 are working in CS and the authorities, that is 15000 people who will vote for the people who promise to keep sucking the life out of the private sector.
We may be past he point of no return.
sums it up perfectly….. this place is doomed……
"A new departure tax is also expected to generate a further $3million and an increase in tourism accommodation fees is a forecast to bring in an extra $3million."
One thing I hear tourists commenting about is how cheap it is to visit Cayman on vacation, so this shouldn't affect tourism at all
WTF? Are you talking about the cruise ship passengers? Because the minute you factor any trip to Cayman invcolving a Cayman Airways connection, you are talking extremely expensive. The cost of travelling to Cayman by air is astronomical compared to other destinations.
Take note, the next tax to rise will be the cruise ship landing/departure tax. Then there'll be no one frequenting the shops and bars of GT or SMB, its bad enough now.
The tourists are the ones destroying the roads, calling on the fire service, and going to the district health clinics so it makes sense that UDP increase the cost for tourists to visit Cayman, in order to reduce their numbers, and also make the cuts in fire, roads, and district clinics.
Thsi makes UDP-sense, and the locals shouldn't feel any repercussions.
NOT!!
Really? Some of my relatives live in the U.S., and they are divers. IF they come here and stay with me (no hotel), they STILL end up paying nearly twice of what they would pay going to Costa Rica on an all-inclusive, including booze and food. We have almost priced ourselves out of the market. Yes, we have stellar, world-class diving, but we don't have after-diving services nor mountains and rivers, nor much of a semblance of local crafts.
We need to wake the hell up. The world shops on the internet now, and compares prices. You go to the Bahamas, Bermuda, Costa Rica, Panama, and you don't have surly security people greet you at the airport — you get an immediate cultural experience, and they make you know that they are glad to have you there.
It is NOT "cheap" to come here. We need to tweak our services and our paradigms to a complete service industry and show our visitors true hospitality………. and culture.
This is why we need a sarcasm font.
Guys, guys, guys lighten up, I think the poster was saying this all tongue in cheek, look at the response. Even a minister in this floundering government couldn't come out with that kind of crap and think they could get away with it.
The fact is that the Cayman Islands tourist industry is just as inept as its government. Why don't we have all inclusive resorts, affordable fully serviced vacation hotels, British and European package holidays, adults only resorts etc……..? Why is it that British Airways send a vitually empty 767 aircraft here 4 times a week after off loading hundreds into the Bahamas and why don't we see UK tour operators on Cayman like we did pre Ivan?
Could those reasons include an opinion of their product that doesn't actually match the reality, could it finally be sinking in that this island isn't frequented by an endless stream of millionaires and that their basic product appeals to the middle classes who just want a comfortable, safe and memorable vacation? I doubt it, otherwise they would be building proper vacation hotel stock instead of over priced condos for short term gain. SMB is awash with empty luxury condos that contribute little to either the tourism product or the economy, this is a massive failing on behalf of the Cayman people as this grab for instant cash is denying them of employment and an alternative to the failing finance sector.
Cayman is grossly over priced and held to ransom by its own government controlled airline, the only way to bring prices down is to open up Cayman's business market to outside competition and sell off the mill stones from around its neck. If local traders can't survive the competition then they have to look at alternatives, but Cayman, its people and the tourist industry cannot afford these protectionist policies any longer or the blinkered view of their own tourism demographic.
713 million given in a year to 25,000 Caymanians that is 28,000 per Caymanian man, woman, child and whodatis
An astounding figure, when you realise Cayman does not have to pay for it's defense
and paid for by each expat paying 33,000 in "fees"in a year
No 16000, remember 9000 are receiving help from social services, outrageous !
Aye … what gives?!
Am I not a person?? 🙂
Anyway, for a group that never holds back its disdain for Whodatis – Whodatis surely seems to stay on your minds.
Imagine where Cayman would be If a merely competent man where in office. No lawsuits with great loss of money, no stopage of much needed projects. A huge amount of taxpayers (OK fee and Duty payers) money would not have disapeared without any records to show where. With three years of uninterrupted and unrecorded spending on???, first class travel and five star hotels and meals, and of course payments to voters via church funds, driveway paving, gass cards, Jobs without the need to show work done, etc., etc., etc. and Cayman would still be seen as a business friendly, expat welcoming, and well functioning financial center with a future. But instead we are all living in a country that is on the verge of loseing it all just to keep feeding a group of intitled Caymanians who have the distinction of not having the ability to even understand what is expected of them in a real world work invironment. Too bad. It could have been very different. Cayman you blew it big time. And that is how the world will remember you for now.
There was once a Cayman "politician" reputedly known as Mr 10% (later 15%), the story was that if you wanted the contract that was his price! I am sure that many could name him, and the suggestion was that there were many more operating the same system. Whilst I am certain that none of the above was true, after all, think how many unnecessary projects would have been planned simply for the rake off, and think how the inflated costs would have cost the country dear, but IF, just IF it was true, heaven forfend, maybe it IS STILL true, that would explain why the government want to spend so much!
And what if, say the Nation Building fund was for buying votes, and the continuing subsidy of the Turtle farm and Cayman Airways was masking financial skulduggery, then the situation would begin to smell really bad. Yes ok I know this is just fanciful imagination, but what if it was so? And what if the appalling lack of financial control was deliberate and being perpetrated to avoid the auditor finding stuff, that would really begin to look bad!
Good heavens, thats started me really wondering, surely it couldnt be…………….
Ah, I just woke up and it was only a nightmare!
Does he have a road named after him/her?
Think so!
Used to be admired for his well brushed teeth if I recall!
Or perhaps "if a merely competent WOMAN were in office"!!
ahhh JuJu is a "competent womaN" … I think. Not sure how well that worked out.
Caymanians???? this sounds like most from the 2004 mass status grants and their dependants. Caymanians but not Natives big difference.
No such thing as a 'Caymanian native', you are ALL decended from immigrants and claimed status somewhere along the line. A part of history you would do well to remember, but then that wouldn't suit your xenophobic view of the world, would it?