Editorial
Cutting the Cloth - to Build the Country's Suit
If there was a clear indication of howGovernment will be watching its spending in this current year,it was evidenced by the budget speech delivered by the HonourableFinancial Secretary, Mr. George McCarthy during his Budget Addressfor the year 2001. His speech was copied on both sides of thepaper containing the address.
In a determined effort to present a well-balancedbudget, while exercising prudence in spending, the new Governmentwhich is barely 20 weeks old has presented to the country a financialplan for 2001 which could well set the course for the countryto live within its means.
Dispelling many pronouncements of speculationwhich included retrenchment of Government workers, the theme ofthis year's budget instead, has given rise to hope that the newlawmakers are sensitive to the needs of its people.
Noticeable among the items targeted forcustoms tariff, are newly imposed duties which should encouragefarmers and other agricultural entrepreneurs that they will haveprotection for their efforts to provide dairy products withouthaving to face punitive competition from our good neighbours tothe North and South.
Through this years budget exercise, it hasbecome clear that because of over-estimates in revenue in pastyears, the Cayman Islands was pushed deeper and deeper in debt.In other words, there was a lot of internal bleeding, while therehave been a terrible waste in overseas spending - particularlyin the area of tourism.
With a total budgeted expenditure for 2001of $360.3 million, which includes an infinitesimal $33.5 millionin new services, capital acquisitions and development, no onecan doubt that it is certainly not 'business as usual' the waythe Civil Service is accustomed to working... and spending.
Starting as recent as last November, whenthe new Administration was elected, Government Information Services(GIS) along with just about every department and unit of the Governmentmachinery, were instructed to find ways to cut costs. Even thesending of faxes was replaced with the far more efficient methodof e-mail.
Commendably, expenditure control policieshave been implemented which will result in a significant amountof savings - if not immediately noticeable, but will certainlybe beneficiary to the country in years and years to come.
Further hope of recovery of the presentsoft economy, is proven with the revelation that there has beenand will continue to be rapport between Government and the PrivateSector Consultative Committee. This, in addition to the appointmentof a newly formed Fiscal Advisory Group, headed up by Mr. RobertBodden - himself quite a successful businessman - which has beencommissioned to make recommendations to the Executive Council,should bode well with this illustration of inclusiveness.
Although it is not known what entities willbe taxed with the proposed new revenue measures ($19.9 million),it is at least worthy to note, that the financial services sector,will carry their almost full 10 percent share of the burden.
The decision to seek borrowings in the amountof $55 million is a sensible move, and the Financial Secretary,in his closing remarks states a truism when he said:
"...A time of difficulty can be viewedas... a time of danger or opportunity". He continued: "TheGovernment views the current (economic) situation as a time ofopportunity. An opportunity to correct the fundamental challengesin public finance, an opportunity to encourage innovation in publicservices... and an opportunity to set the stage for meaningfuleconomic opportunities for all Caymanians... and residents"
The presentation of this year's budget isan opportunity for all concerned about the fortunes and safe passageof the Good Ship Cayman to support every suggestion of fiscalprudence... and tolerance to spend and live within the country'sand personal needs.