Economic Boost for the Cayman Islands

The Cayman Islands ended its 2010/11 budget year on 30 June with a $25 million operating surplus, according to Premier McKeeva Bush.

The surplus, according to figures provided by the Premier’s office ahead of a broadcast speech to the country on Thursday night, were final actual budget numbers for the fiscal year ending 30 June. The numbers had not yet been audited, but Mr. Bush said he expected “normal adjustments” but no major changes once that audit was completed.

Government’s projected revenues went from $510 million to an actual $535 million, according to the Premier. Government operating expenses went from a projected $508 million to an actual $483 million.

Both represented improvements on projected figures of $25 million in each area.

Performance of government-owned companies and statutory authorities also improved from forecasts, reporting a surplus of about $3 million for the year.

In addition, government spent about $3 million less in financing costs for the year – that’s the amount of money Cayman must pay to meet its debts.

The Premier said this was done by “stretching out the time before it became critical that we had to borrow the $155 million”. Cayman borrowed $155 million to help meet costs in the 2010/11 fiscal year.

“The entire public sector….was budgeted to have a deficit of $32 million whereas the year’s actual performance indicates an overall surplus of $25 million; a total turnaround of $57 million,” Mr. Bush said. “This is a tremendous testament to the prudent and responsible management of the country’s finances.”