BUDGET PERFORMANCE ON TARGET, GOVERNMENT SAYS

The Cayman Islands Government is reporting that its budget performance continues to exceed previous projections and concerns. Just-released unaudited financial results for the first five months of 2026 show that Core Government recorded a $267.9 million surplus, driven largely by revenues exceeding original forecasts, particularly within the financial services sector. The National Coalition For Caymanians(NCFC) administration continues to forecast operating revenues of $1.288 billion and an operating surplus of $10.5 million for 2026, it says, “while remaining fully compliant with all six Principles of Responsible Financial Management”.

This comes in the backdrop of intense debate during the presentation and debate of the government’s first budget last November. Amid concerns about whether the projected surplus would be achieved, a series of corrective cost-cutting and revenue-raising measures was taken.

Following the supplementary appropriations approved by the Finance Committee, Core Government operating revenue is forecast at $1.288 billion, which is approximately $30 million higher than originally budgeted. The Government says it continues to project an operating surplus of approximately $10.5 million for 2026. No additional borrowing is required beyond the level approved in the 2026 Budget. The Government says it remains fully compliant with all six ‘Principles of Responsible Financial Management’, with cash reserves projected to remain at approximately 94 days of operating expenditure.

Coming out of the recent Finance Committee meeting on Tuesday, June 30th, $134.3 million in supplementary appropriations was approved “to strengthen education, expand cost-of-living support for Caymanian families, invest in critical infrastructure, protect the environment, preserve Caymanian culture and heritage, and reinforce essential public services across the Cayman Islands.”

PREMIER: REVENUES OUTPERFORMED EXPECTATIONS

Hon. Premier Andre Ebanks said the country’s strong financial position is enabling the Government to deliver meaningful investments that improve people’s lives today while building a stronger, fairer Cayman for tomorrow.

“The conclusion of the Finance Committee marks another important step in delivering on our commitment to responsible governance and ensuring the benefits of our strong economy are shared more widely across our community,” the Premier stated. “Thanks to revenues outperforming expectations and the continued sound stewardship of the public finances by the Ministry of Finance, Government has been able to invest an additional $134.3 million in strategic priorities while maintaining a projected operating surplus and full compliance with our fiscal responsibility principles.”

According to the Premier, these investments will strengthen education, expand affordability measures for Caymanian families, enhance essential public services, protect the natural environment, support agriculture, preserve culture and heritage, improve critical infrastructure, and continue diversifying the economy. “They will also help ensure more Caymanians share in our country’s economic success—not only today, but for future generations as well,” he stated.

FINANCE MINISTER: SOUND FINANCIAL MANAGEMENT

The Premier’s remarks on the state of the government’s finances are supported by Hon. Minister of Finance and Economic Development Rolston Anglin. Mr Anglin, who is also chairman of the Finance Committee, said the supplementary appropriations demonstrate that prudent financial management enables the Government to respond to emerging priorities without compromising fiscal discipline.

“The Finance Committee proceedings demonstrate that sound financial management delivers real benefits for our people. As the Government’s revenues have continued to outperform expectations, we are able to make strategic investments in education, infrastructure, social programmes, public safety, and economic resilience while continuing to project an operating surplus for 2026.”

He noted that every supplementary appropriation approved in the Finance Committee has been carefully considered to address genuine national priorities, whether that is expanding educational opportunities for our children, supporting vulnerable families, strengthening our financial services framework, preserving our environment, or investing in critical infrastructure that will benefit Caymanians for generations to come.

“Importantly, we are making these investments without increasing the level of borrowing approved in the 2026/27 Budget. Government remains fully compliant with all six Principles of Responsible Financial Management, demonstrating that fiscal responsibility and meaningful investment in our people can, and should, go hand in hand,” Min. Anglin stated.

COST OF LIVING

The Government said its continued strong financial performance is creating opportunities to invest in Caymanians while maintaining prudent financial management.

On the cost of living, it stated that recognising the continued impact of global inflation and rising living costs, the Finance Committee approved additional funding to strengthen programmes that directly benefit Caymanian families and vulnerable members of the community. The areas that will primarily benefit from both the Finance Committee and prior Cabinet approval include expanding the Government’s Summer School Programme to support hundreds more students while helping working families during the summer months. It also covers continuing financial assistance programmes for those most in need, continuing the summer stipend policy for bus drivers and bus wardens, continuing ex gratia payments for seafarers and veterans, and complementing the Government’s wider affordability initiatives, including the Fuel Relief Programme and increased duty allowances for returning residents.

“Together, these measures will help ease financial pressures on families while ensuring targeted support reaches those who need it most,” the Government said in a statement.

INFRASTRUCTURE AND MORE

The Finance Committee also approved significant investments that will strengthen the country’s long-term infrastructure and capacity. These include the acquisition and completion of educational facilities to address growing student enrolment. Strategic public land acquisitions, major road improvements, and drainage works are also listed. Port Authority infrastructure, equipment and strategic land purchases, conservation land acquisitions, including environmentally significant areas such as Barkers and Owen Island, and continued investment in the agricultural sector also form part of the funding agenda.

“These investments are designed to address immediate national priorities while laying the foundation for sustainable growth and improved quality of life for future generations.”

Additional funding was also approved for Cayman Airways to address extraordinary fuel price increases, engine replacement costs, and other unforeseen operational pressures, helping the national airline continue providing the reliable air connectivity that supports Caymanian families, businesses, and the tourism industry. It also said that further investments will strengthen the Cayman Islands Fire Service, expand youth programmes, enhance sporting initiatives, and continue to preserve and promote Caymanian culture and heritage.