Cayman Net News: Budget balanced

Budget balanced

Hon Kurt Tibbetts, Leader of
Government Business

Tuesday, November 1, 2005

The Government made an announcement on Friday afternoon, 28 October that it had managed to balance the country�s books for the forthcoming financial year and the Budget had gained approval in the Legislative Assembly.

Even though there had been earlier concerns that cash would be tight this year, the Hon Kurt Tibbetts, Leader of Government Business announced to the media that the Budget had been finalized and passed though the Legislative Assembly.

Apart from the increase of fees from the Mutual Funds sector as announced earlier this week, no other new revenue generating measures were implemented and the cash required will be found through existing channels.

The Government said that the Budget of some $380 million in operating revenue would be enough to cover the needs of health, and related benefits, the increased resources for the Royal Cayman Islands Police Service, (RCIPS) education and other departments.

Some $84 million of that figure would be spent on capital expenditure such as the development of new school buildings as well as a new National Archive Office, MRCU building a new Emergency Operations Centre as well as the construction and development of new roads.

The budget also includes a provision for extraordinary expenses, which the Government anticipates will be for the last time as most of that expense has been related to recovery, post Hurricane Ivan.

The Government also said that if its spending exceeds this budget they have an option to borrow up to $63 million if needed.

However calculations reveal that the Government should have a surplus of around $4 million.

Mr Tibbetts said the budget was in full compliance with the principles of responsible financial management.

�Financial risks are being prudently managed with the necessary insurance coverages in place to protect the Government�s key assets and protect against potential liabilities,� said Mr Tibbetts. �Also a hurricane preparedness and response strategy is in place.�

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