ANGLIN: A BUDGET TO REMEMBER

ANGLIN: A BUDGET TO REMEMBER

On Thursday, Hon. Minister of Finance, Rolston Anglin, delivered the first budget of the National Coalition For Caymanians(NCFC) administration, framing it as a turning point for Cayman.

“I rise in this honourable chamber to deliver what I believe history will prove to be a budget that is going to be remembered as a key turning point, not just because of its fiscal prudence, but because it is a responsible path to a stronger tomorrow, a pragmatic approach to addressing the public's needs.”

In an elaborate, policy-driven presentation, Mr Anglin detailed how the administration, which took office in April, intends to manage the finances of the government and spur the economy, underpinned by a mandate of prioritising Caymanians.

While largely reflecting what was previously outlined in the SPS, the Budget Statement included several updates.

The projections are for the government to be broadly in a much stronger financial position, with implications for the wider economy.

"Operating revenues are forecast to be KYD1.184 billion, which is some $48 million higher than the estimate on the original 2025 budget,” Mr Anglin stated. 

He explained that the higher-than-budgeted operating revenues are mainly due to favourable variances in financial services and real estate-related revenues.

On the other hand, he pointed out that “finance expenses for core government are forecast to be $1.174 billion for 2025, which is $90.9 million greater than the original budget of 1.083 billion.” The Finance Minister said this significant increase in costs is due mainly to under-funding in the 2025 budget - putting the blame squarely on the previous administration.

In his words: "The major drivers for the increased operating expenditures are outputs from non-governmental suppliers anticipated to be $4 million to $5.1 million higher than originally budgeted, mainly due to tertiary level medical care at various local and overseas providers for uninsured, under-insured and indigent persons being significantly under budgeted in the 2025 original budget.” 

Mr Anglin also listed other medical assistance costs, scholarships, and deficits accrued by government companies and statutory authorities as having contributed to the depleted surplus projection. That aligns with the earlier deficit warning in April in the Pre-Election Economic and Financial Update(PREFU), which was published in the latter stages of this year's election campaign. It became a hot topic then, as it did again during last month’s SPS debate in Parliament.

As a result, the government’s surplus for 2025 will come in at KYD10.3 million, which Mr Anglies said will be $40.9 million less than the original budgeted operating surplus of $53.2 million.

Looking forward to 2026 and 2027, he projected a much-improved outcome, especially for 2027.

“The entire public sector is forecast to have an overall net surplus of $6.7 million in 2026,” he reported, noting a significant improvement in the outlook for 2027. According to him, when all factors are taken into consideration, “the entire public sector is forecast to have an overall net surplus of $30.5 million in 2027.”

That major forecast improvement contrasts with the projection in the SPS for which the NCFC was criticised by the Opposition, that “they can only muster surpluses of $6.5 million in 2026, $9.3 million in 2027, and $13.8 million in 2028.”

Regarding the new surplus projections, Mr Anglin stated: “Whilst these surpluses may not be as large as those in previous years’ budgets delivered to this honourable house, they are through careful and honest budgeting.”

The budget reflects the main revenue-raising measures detailed in the SPS, mainly coming via the financial services sector, stamp duty, high-end real estate transfers, immigration fees and various trader license fees.

Among the details presented was Cayman’s debt-to-GDP ratio, which the Minister of Finance upheld as something Cayman should be proud of. ”The government's debt to GDP ratio averages 8.5 per cent over the 2026 to 2027 budget period, which is an enviable metric that few countries in the world can match,” he declared.

He also outlined several new initiatives that the NCFC government will be implementing, as well as those under consideration, especially covering ballooning health insurance costs, as well as strategies in education to ensure that Caymanians are prioritised and have a smooth pathway into key roles in the job market.

About the updates to last month's SPS, Finance Minister Anglin also said: “I alerted this honourable house to the fact that any material changes or variances between the SPS estimates and the final budget would be in the area of revenues, as we at that point had not completed all of the work in the revenue forecast projections.”

He said he “feels extremely confident that this budget is a truthful budget, a budget that will be one that will set the standard for all future budgets."

The debate of the NCFC's government's first budget starts next Tuesday November 11th.