GOVERNMENT ANNOUNCES NEW REVENUE MEASURES IN FIRST SPS

By Staff Writer

The much-anticipated first Strategic Policy Statement (SPS) by the National Coalition for Caymanians(NCFC) government came on Wednesday, and with it a range of revenue-raising measures against the prospects for economic growth.

In presenting the SPS, which precedes the annual in November, Hon. Minister of Finance Rolston Anglin stated: “Recognising the need to grow the government revenues, the NCFC government has taken the bold step to implement new revenue measures as part of this SPS. We have carefully selected a range of new revenue measures that are low-cost to implement and will have little to no impact on ordinary citizens, while generating stable flows from growing economic sectors.”

For the 2026 fiscal year, these new measures will be placed on the financial services sector, land and property transfers, and crucially, the reintroduction of mandatory identification for all work permit holders.

From the financial services sector, the estimated yield is KYD47.7 million, while domestic fees, which include stamp duty on high-end land transfers and work permit-related fees, are expected to bring in total KYD18.7 5 million.

According to the outline provided by Finance Minister Anglin, immigration, a core element of the NCFC governing policy, will see “for example, the reintroduction of a mandatory identification for all work permit holders.”

He also listed various trader license fees totalling KYD4.62 million, made up mainly of Special Economic Zone trade certificate fees and local company control licenses, or LCCL fees.

“These new measures are a mix of increased rates for existing measures and some brand new measures,” Mr Anglin stated.

The Minister of Finance also gave an outline of the NCFC government’s spending plans for the next fiscal year.

The government’s projected operating revenue over the two-year SPS period (2026-2028) is forecast to total KYD3.864 billion.

This was broken down as KYD1.252 billion in 2026, KYD1.296 billion in 2027, and KYD1.316 billion in 2028.

The details of these revenue-raising measures, along with the government’s spending plans, will be further addressed and debated when the government presents the annual budget next month.

According to Finance Minister Anglin, “This SPS is built on a solid foundation of common sense and pragmatism. Government has taken a conservative approach to the management of public finances, which will bring about stability in resource planning and execution policies.”

Hon. Premier and Minister for Financial Services - Andre Ebanks, and Hon. Minister for Finance and Economic Development - Rolston Anglin had both earlier this week set the tone for the NCFC government’s first Strategic Policy Statement(SPS).

Premier Ebanks had prefaced the much-anticipated SPS, saying it “reinforces public confidence by clearly articulating our strategic direction, the rationale behind our priorities, and the benchmark by which our outcomes will be evaluated.”

Quite tellingly, he stated: “Rather than perpetuating a broken process that has consistently generated inaccurate financial forecasts, the NCFC (National Coalition For Caymanians) government took the decision to amend the traditional budget process to provide a more accurate, well-considered SPS for the people of the Cayman Islands.”

That reference to a broken process consistently generating inaccurate financial forecasts has been viewed as pointing a finger at the Pre-Election Financial Update (PREFU) published in April.

In June this year, shortly after taking office in April, the NCFC administration changed the schedule for delivering the SPS  from July to October in an election year.

Minister of Finance Anglin had also previewed the SPS by making this observation: “The 2026-2028 Strategic Policy Statement sets the Government’s priorities, guides budget planning, establishes financial targets and adheres to responsible financial management principles while ensuring the delivery of critical services to improve the lives of Caymanians.”

This year’s SPS - which sets out the government’s fiscal agenda spanning two years - has been the subject, not just of anticipation but of near-controversy.

At the height of the election campaign in April, the Ministry of Finance, as is required by law, published what is known as the Pre-Election Financial Update (PREFU).

It had cautioned that “For the financial year ending 31 December 2025, the Government is projected to have an Operating Deficit of KYD26.2 million.”

As expected, with that projection the report shifted the focus of the election campaign, and the issue of the projected budget deficit has since become the object of analysis, most recently with an urgent meeting of the Parliamentary Finance Committee called at the request of Finance Minister Anglin to seek approval for additional spending, or supplementaries.

By some estimates, the new government was facing an, albeit inherited, budget deficit in the region of KYD60 million.

That figure was rejected when Mr Anglin presented his case for an additional KYD108 million. While it still brought the government perilously close to the limits set out in the Framework for Fiscal Responsibility (FFR) with the British government, it still left the NCFC government with a surplus headroom, but was reduced to around KYD10.2 million.

The SPS presented on Wednesday will be debated on Friday of this week.

“We have a responsibility to manage our resources, not just for today, but to do so in a way that we do not unduly burden future generations. This SPS sets us on a firm path to do just that,” Finance Minister Anglin concluded.