Hon Kenneth Jefferson Financial Secretary

Increased funding and savings in expenses will be used to fund the $5.5 million approved by the Legislative Assembly (LA) on Monday as additional spending for the current 2007-2008 budget.

Financial Secretary Hon Kenneth Jefferson told an extended Finance Committee sitting last Friday that as a result of the supplementary budget, the reduced net surplus on 30 June this year is now projected to be $20.8 million, from the figure of $37.7 million projected in November 2007.

Mr Jefferson noted that total operating revenue is projected to decline by some $7 million - from $530.7 million to $523.3 million. Total operating expenses are expected to be up to $489.3 million, from the projected total of $476.6 million in November 2007.

More than half of the items considered were reductions in budgeted spending. For instance, all items considered under appropriations to the Attorney General were reductions, totalling $1.4 million. On the other hand, several items necessary to improve citizens’ welfare include 18 items under the Ministry of Health and Human Services, with a net total of $10.9 million that require additional funding.

The bulk of this goes to cover the operating loss of CINICO at $7 million, followed by $2.3 million to pay for tertiary care at various overseas institutions. Ex-gratia payments to ex-servicemen will account for an extra spending of $1.2 million, while providing more poor relief vouchers than previously budgeted account for $328,000 in additional spending.

Rental accommodation for persons in need requires $300,000 more, while poor relief payments need an additional $135,500, the LA heard on Monday.

Other major items requiring significant additional funding include covering the Cayman Turtle Farm’s operating loss of $5,422,534, taking the total cost to cover this item to $8.6 million from $3.1 million; providing Cayman Airways service to strategic markets, for a sum of $4.08 million, raising the approved appropriation from $11.5 to $15.6 million; the east-west arterial, $2.7 million, increasing the funding from $8.5 million to $11.2 million;coastal protection projects, $2.4 million, taking the funding up from $1 million to $3.4 million; and additional legal aid services, $931,000, to augment the appropriation from $919,000 to $1.9 million.