PPM predicts $100M surplus
(CNS): The new Progressive government has presented a budget for 2013/14 with a whopping surplus of some $100.3 million dollars due to cuts in operating expenses and a prediction of decent earnings for government as a result of the sustained revenue from financial services and tourism. Finance Minister Marco Archer said the government expected to bring in over $644 million but will be spending less than $518 million in operating expenses. With debt financing expected to be $31.4 million, core government is hoping for a surplus of more than $95 million, which will be further boosted by some $5million from the statutory authorities and core government companies, following innovative cost cutting measures.
Delivering his first full budget, Archer, the new finance minister, made it clear that fiscal prudence, which was the theme of this budget, would be the future modus operandi for his ministry.
Outlining some of the details, Archer demonstrated how he had managed to cut costs already through innovation and thoughtful management of government spending. He pointed to some cost cutting measure among statutory authorities, from foreign exchange reductions, rent removal between government departments and the removal of duty for government agencies, which have led to some $10 million in savings
Archer also noted that government would be improving its revenue collection to ensure it brought in more of the fees it is owed and that going forward it would be better managing concessions and waivers.
Check back to CNS later today for a full report on the budget, throne speech and the policy statement from the premier.
Category: Politics
OK, and just how much of this will be left once the bills and loan payments have been paid. Stop trying to fool people, this number is before all the outgoing payments. I can say I have a 100 bucks left but I really don't if I have a 75 Dollar bill to pay now do I. These guys must think the people are stupid and from reading all these posts a lot of them seem to be, probably the same folks that keep voting the same two groups of leaders in and out of office..
Until the money is audited by an independant body at the end of the financial year I will not be holding my breaththat it even exists at all, much less the amount quoted.
It's such a relief to see my country in the hands of these qualified and capable leaders. The PPM were able to produce 3 surplus budgets during their last term and I'm positive they will improve their record to produce a full 4 surplus budgets during this one. Stay on the right track, PPM. You're doing good!
MAN that looks like mckeewa in the picture
Lots of talk about surpluses for government..Hey Alden, rememember us the people that voted you in, we need jobs, and tax breaks, you are continuing to kill us…The priorities of this government never cease to amaze me..
yeah Right, just like that. With no cuts or increased fees. I'll will have to see it to believe it. Another False promise, just another day in Cayman Politricks
There are cuts. Can't you read?
There is none so blind.
You didn't get past the headline, did you? Typical UDPer.
I don't get this, I can't find a job , have bills to pay, many of which go to the government indirectly because of their high taxes so they can boast of having a $100M plus surplus. How about sharing some of the wealth by cutting some of the taxes particulary on fuel so that CUC doesn't keep on killing us.
I concur…I just got up after falling to the floor when I saw my CUC bill for this month. I don't need sex when CUC screws me every month!
It's not a matter of boasting you idiot. We are required by the UK to have these supluses to meet our obligations under the FFR.
Hence the need by ppm or udp to invent surpluses and submit Enron quality accounts. Smoke and mirrors is all this exercise of presenting cig annual budget is about.
I don't have the kind of money you have and I am sure the FFR doesn't require us to have a $100M surplus and if so show me where it says we do..Something tells me you are the idiot!!!
Read: http://www.compasscayman.com/caycompass/2013/10/09/Gov-t-surplus-will-pay-debt,-capital-costs/
In order to meet its debt to revenue financial responsibility ratios Cayman is going to have to bring its debt down considerably, so a large part of the surplus will be spent on repaying part of the principal. This in turn will lower the interest payments in future years allowing to satisfy another financial responsibility ratio.
I just fell off my chair reading this!! LOL
Keep in mind the CIG has to run surplus in order to retire colossal bullet payments on debt coming due. This is not "found money" that CIG can now earmark for new spending.
Great. I won't feel remotely bad not declaring all my vacation shopping at customs if they are rolling in a surplus.
Last week their books were so out of wack, government didnt know if the money was coming or going. Now they say a surplus of $100 million? I remember when UDP took over in 2009, PPM said they had a defecit of $25 million, then Mac revealed it was really $80 million. How can the people beleive anything our MLA's say? Add to that, they want to build a port and expand Owen Roberts, does this surplus include the funds givernment will spend on those projects? Not to mention, PPM promised to reduce most of the tax hikes Mac put in place earlier this year… I guess they forgot about that. How convenient.
The right man for the job. Macro Archer………
Unless Marco is also a magician, he's not the right man to make these figures actually happen.
LOL Marco getting credit for FS Jefferson pretend calculations. I hope he is willing to accept the blame when it all goes up in smoke
When you do that try and upgrade the Brac Fire station with some of the money please..
Why don't we cut all the subsidies and perks the Brac scrounges and use that extra money for Brac projects? The Brac needs to learn sufficiency instead of welfare.
Nothing more for the Brac. They already get enough and don't pay their fair share.
You guys could actually make use of your multi million hurricane shelter by turning it into a fire station.
$ame $hit different government
Sorry but this shit smells a hell of a lot better to me.
I also have a bridge to sell you over the North Sound if you believe in these figures.
is this any different from the fantasy projections of the last governmint?
I assume by debt financing, it means interest on debt as if it included principal, the surplus of $95 million would be a cash flow surplus It seems highly optimistic that government statutory authorities/companies will generate $ 8 million surplus seeing that the government owned companies CAL and CTF both are big loss makers as well as two of the biggest statutory authorities, the Port and HSA.
I pray
I pray to God that this becomes a reality as we really need a surplus and even if not that much any surplus will be welcome.
Won't happen! Anyone up for a bet? Eventually CS must be cut to reach such surpluses.
How many hundreds of million U.S. is the government short on contributions to CIG pension and health care?
At least this (PPM-led) Gowerment is paying something into the public Pension. McKeeva and his UDP, including Julie andthe UDP-lites, didnt pay s$*t.
Miss Julie will save ppm now she has been rewarded for becoming a ppm member with Speaker’s position. PPM proved how deseperate they are with that one move. ROFLMAO
After a load of expats are pushed out and new ones leave we will see how this works out for us.
So let me get this straight. In the last 6 yeras or so the UDP increased fees across the board in an effort to balance their budget and they still ended up over-budget every year they are in office. And please spare me that "they had a surplus last year", that has never been confirmed. They raised import duty by 10%, hiked work permits to levels where companies closed shop becauseCayman got too expensive, they introduced a slew of new fees at every government office and agency (have you tried getting a Cert of Good Standing lately?), and all without the slightest idea of what they were collecting vs what they were spending. Marco puts in 5 months of work, tightens up spending, ensures the fees are being collected, and we have a huge surplus. Marco, my friend, you and your party deserve a standing ovation for this work. Please do not let anything resembling a UDP representative near the budget. Ever. Again.
Well done, Marco! I can believe that fiscal prudence will be a hallmark of Marco's Ministry since it has been a hallmark of his own personal life.
The proof will be in the pudding. Not in auditable accounts of course. But pudding works just as well when you are smoking with caterpillars and talking to the imaginary.
But to give them their due, never in the history of fantasy island accounting has the government of the day rolled out a number of such potency and size.
Taking away duty from Government to 'inflate' earnings is like pretending you don't pay rent so you can show profit on a store that is not making money.
Government profitability needs to be real.
Yeah right, Mckeeva was going to do the same thing do….You wait til their hands get further down into the cookie jar…
Please don't compare Marco to McKeeva. Chalk and cheese.
Milk and carrots.
Good to see someone finally engaging the Statutory Authorities, many of them have gone rogue in recent years with their ivory towers and empire building. They spend a lot of money, but the focus has always been on the central government.
When Central Government was getting salary cuts, some Statutory Authorities were awarding 10% year end bonuses.
We are one Government, all public sector agencies should assist in pulling the Country out of this austere period. Good for you Marco, good to see you expanding your focus and looking for different ways of making the budget work and the best part is, no new taxes.
"rent removal between government departments and the removal of duty for government agencies"….
How does this save any money? Those fees are counted as revenue if paid so every dollar "saved" is one less dollar in revenue!
On another note – if they are really going to do so well, how about reducing the duty on fuel so everyone has reduced costs and thus more money to inject into the economy?
OH WOW!!! nothing there for the men on the streets,thanks PPM It’s sad to think that some go through life being oppressed by another man, woman or islands, by way of intimidation, assault, control, or any means. What gives someone the right to negatively affect another’s pursuit of a decent life? It hurts to learn about the unacceptable atrocities going on around the world. For those far away, I will always pray. Growing up I thought the Cayman Islands was a great, invincible. And as an adult, I know the Cayman Islands is great, but nothing is invincible. While other nations try to liberate, oppression is creeping into Cayman Islands. It’s in the form of financial burden, job loss, and so many other immeasurable troubles attributed to bad political decisions, self-serving fraud and deceit that doesn’t take into consideration what’s best for the Caymanian people and the Islands as a whole and an enabling, irresponsible media that no longer cares about the truth. All need to be held accountable and these things mustn’t continue to be tolerated.
We should be able to achieve at least 80 percent of the estimate, which would equal 82.4million.
3.2 percent of Civil Service emoluments of 250million equals 8million. That would equate to approx. 10percent of the achievable surplus, leaving 74+million for Govt to bank.
Looking like a good Christmas Bobo.
And before the UDP jump on and talk about PPM giving away money, one question: Where do you think the Civil Servants will spend their re-instatement of the 3.2percent COLA?
Answer: "In dese Cayman Islonts"
How about helping the working man out a bit and do something with the cost of fuel! How much per gallon goes to the government?
I am of the opinion that the working person pays out of their salary "Quarter on fuel charges" "half to CUC and Water Authority" while the other Quarter pays rent/Mortgage" and still finds shortfalls in every which way but loose. A good idea would be to employ the services of Micky Mouse, and you will work like a scale.
Curious, if the removal of duty for goverment agencies led to a savings of 10 Million, doesn't that mean 10 Million less that another part of goverment would collect. This doesn't sound like a savings to me as one would cancel the other out. That's like saying a Business owner saved money by not paying himself..
Less duty to collect means we can get rid of some customs officers-a cut in the civil service!! Of course they then become unemployable so we are still up unowhere creek.
Looks like some of the new business brought in over the last few years is starting to slowly payoff..Hopefully they can live up to the cost cutting measures so we can take full advantage of the increased revenue and get out of this whole..
So I am overpaying all my fees by about 20%.
Hey Marco, did you remember about our CUC bill?
Now if we can only keep certain hands out of the pot…
Hold on a second, how does removing rent between government departments and the removal of duty for government agencies lead to any savings?? You're simply reducing both an expense and a revenue, net effect on the bottom line is ZERO…..
Looks like PPM also hired Mickey Mouse to handle the budget. Do these ppl just pull figures out their a$$?
sounds good but so did the udp pretend budgets….
I pray that Mr Archer is not using Mckeeva's calculator…
Yeah !!!- because that will give you some atrocious figures, your head will spin, and you will spend more for the next three years plus, so PPM please discard of that instrument.
And I just saw two squadrons of pigs fly over GT. What the heck is the Hon Minister taking?
I will believe it when I see it!
Bull$hit!