June 25, 2022

Cayman Islands Government 1st Quarter Results Surpass Budget 

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Grand Cayman, 11 May 2022 – Deputy Premier and Minister for Finance & Economic Development, Hon. Chris Saunders, presented the Cayman Islands Government’s unaudited financial report for the First Quarter of 2022 (1 January to 31 March) to Cabinet on Tuesday, 10 May, with the results being Gazetted today (Wednesday, 11 May). 

Surplus: Central Government – Highest ever and surpasses Pre-Covid levels

For the first quarter of 2022, Central Government recorded a surplus of $220.965 million which was $18.624 million better than Budget of $202.341 million largely due to better than expected revenues of $12.997 million. The results were the highest ever for a first quarter and surpass Pre-Covid levels. 

Surplus: Entire Public Sector – Better than Budget and increase over prior year

 At the end of the first three months of 2022, the Entire Public Sector had a surplus of $215.718 million which was $22.178 million better than the projected surplus of the period of $193.54 million and an increase of $12.040 million over the same period in 2021.

This puts the Q1 2022 results on-par with the last comparable pre-COVID period of 1 January – 31 March 2019, which showed a surplus of $216.747 million.

Revenues: Highest ever and better than budget

Revenues for the first quarter of 2022 were the highest ever and also surpassed budget, with actual revenues amounting to $446.906 million whereas projected revenues were at $433.909 million for a positive variance of $12.997 million.

When compared to the same period in 2019, revenues for Q1 2022 were $73.246 million higher than the $373.660 million collected in Q1 2019.  

Expenses: Lower than Budget but still above Pre-Covid levels

Expenses for Q1 2022 came in under budget, with actual expenses amounting to $225.941 million while budgeted expenses were $231.568 million for a positive variance of $5.627 million.

However, while Q1 2022 expenses compared favourably to the budgeted figure, they were significantly higher than those for the same period in 2019, which amounted to $158.256 million. This is an increase of $67.685 million. 

Cash: Better than budget but still below Pre-Covid levels

The Government’s cash position also improved in Q1, with the actual cash position being $83.676 million greater than budgeted expectations. Actual bank account balances at 31 March 2022 were $535.374 million, while budgeted bank account balances at 31 March 2022 were $451.698 million.

Also included in the note to Cabinet was a comparison of the Q1 financial performance over the last three years, as summarised in the following table:

 Revenues $373,660,000$353,189,000$404,212,000$446,906,000
Operating Expenses, Financing Costs and Non-Operating Costs$158,256,000$180,898,000$207,981,000$225,941,000
Operating Surplus of Central Government$215,404,000$172,291,000$196,231,000$220,965,000
Surplus/(Deficit) made by Statutory Authorities and Government Companies$1,343,000$4,964,000$7,447,000$(5,247,000)
Surplus of the Entire Public Sector$216,747,000$177,255,000$203,678,000$215,718,000
Total Bank Account balances$747,145,000$659,621,000$611,208,000$535,374,000

Deputy Premier Saunders said, “I am pleased with the actual results for the first three months of the year, as it demonstrates the financial prudence of this PACT Government and our commitment to improving Government’s financial position as we recover from the effects of the global COVID-19 pandemic.”

Included in the note to Cabinet was a breakdown of revenues collected in several categories with a comparison to prior years summarised in the following table: 

Import Duty Revenues$51,758.000$50,445,000$45,110,000$53,677,000
General Registry Fees$131,627,000$126,454,000$139,288,000$151,231,000
CIMA Fees$86,635,000$78,792,000$125,885,000$138,890,000
Work Permit Revenues$21,409,000$20,212,000$17,974,000$26,694,000
Property-related Revenues$17,224,000$18,961,000$24,141,000$21,806,000
Tourism-related Revenues$15,302,000$11,638,000$169,000$3,186,000
Other Coercive Revenues$11,663,000$10,574,000$12,811,000$11,399,000

Deputy Premier Saunders observed, “The Revenues for the first quarter were better than Budget and an improvement of $73 million or approximately 20 per cent over 2019 (pre-COVID). The more detailed results tell the same story when broken down by the various revenue categories. When we examine the revenues driven by the Financial Services sector that are collected by the Registrar of Companies and CIMA, we see that the confidence in our Financial Services sector remains strong despite the many global challenges.”

He continued, “However, our Tourism sector – while recovering – still hasn’t achieved pre-pandemic levels. Duties on fuel and alcohol, which are charged by volume and not value, are below 2019 levels. The silver lining in all of this is that overall confidence in our economy and our stewardship of Government finances remains high. The results speak for themselves.”

Premier Hon. Wayne Panton said, “The first quarter financial results underscore the PACT Government’s commitments to fiscal discipline, to supporting a strong, resilient economy and protecting Cayman’s position as one of the best places in the world to live, work, visit and invest.”

The Premier continued, “One of the first priorities of this PACT Government was to stabilise Government’s financial position by containing costs, growing revenues and returning us to a surplus position. I would like to thank Deputy Premier and Minister of Finance and Economic Development for his diligence in containing overall expenses at or below budget projections while simultaneously increasing our cash position in the 1st quarter of 2022.  Additionally, I would like to extend my thanks to the other Ministers and Parliamentary Secretaries for their commitment to achieving these results.”

Premier Panton also extended his thanks to His Excellency the Governor Martyn Roper and Deputy Governor Hon. Franz Manderson for their support.

He said, “I would also like to sincerely thank the thousands of conscientious public servants, who work diligently every day to serve the public. The Government’s financial success is achieved in partnership with the Civil Service. The positive results are a testament to Civil Service’s commitment to ensuring value for money, careful timing and where possible, reducing expenses while maintaining or increasing standards of service.”

The Gazetted Unaudited Quarterly Financial Report Three-Month Period Ended 31 March 2022. (Ex35, S1) may be found athttp://gazettes.gov.ky/portal/pls/portal/docs/1/13164571.PDF

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