Durrant Pate/Contributor

The Cayman Islands Government’s unaudited financial results for the first five months of the year show a $179.5 million operating surplus for the entire public sector (EPS).

This amount is $30.0 million more than the projected year-to-date, with operating surplus amounting to $149.5 million. Total operating revenues of core government for the five-month period ended May 31, 2022, totalling $568.9 million, which is $51 million over the prior year and $23.0 million ahead of budget.

This marks the first time that revenues have exceeded half a billion dollars in the first four months of a financial year. With the surplus running ahead of projections, Deputy Premier and Finance Minister, Christopher Saunders has announced that approximately 20 per cent of the existing surplus would be diverted to the Government’s energy assistance programme announced in June.

Total revenues had surpassed the half-billion mark by the end of April 2022, which is an unprecedented achievement.

Deputy Premier Saunders said, “With oil, and therefore energy prices, showing no sign of meaningful abatement in the local market and indeed worldwide, we will use a portion of the surplus to assist our people with the challenges this increase in the cost of living has caused. We are fortunate to be able to take this and other initiatives as announced by the Premier and look forward to offering this additional support during such a challenging time to provide much-needed financial relief to our people.”

Revenues: Better than budget in several categories

The better-than-budget revenues in the first five months of 2022 were owing largely to better-than-expected performance in several areas. Specific areas contributing to the better than budgeted expectations including:

• Land holding companies’ share transfer charges were $2.2 million better than budget as significant increases are related to higher volumes of property transfer.  Compared to the actual results for the same period in the prior year, there is a $1.2 million favourable variance;
• Mutual fund administrators’ licence fees surpassed projections by $3.9 million due to an increase in the volume of funds registered.  Compared to actual results for the same period in the prior year, the 2022 fees received are approximately $3.6 million more;
• Partnership fees were $4.1 million better than budget, due to the level of registration outperforming the anticipated increase.  Compared to the actual results for the same period in the prior year, there is a $7.4 million favourable variance;
• Private fund fees were $3.5 million over projections, due to a higher number of Private Funds being registered than anticipated.  Compared to the prior year actual results there is a $7.7 million favourable variance;
• Work permit fees were $5.5 million more than anticipated, representing an upturn in demand for workers as the economy moved into phase five of the post-pandemic border reopening.  Compared to actual results for the same period in 2021, these 2022 fees are $7.1 million or 25 per cent more; and
• Stamp duty on land transfers amounted to $13.2 million more than projected, as there continues to be higher than expected volumes of property transactions coupled with high property values.  Compared to actual results from the same period in 2021, the 2022 duties are $4.3 million less.

However, there were areas still performing below expected projections. These included “Other Import Duty” which came in at $11.2 million less than expected but compared to actual results from the same period in the prior year, there is a $10.9 million favourable variance.