The Cayman Islands Government’s Quarterly Financial Report for the Three-Month Period Ended 31 March 2026 was published in the Cayman Islands Gazette on Friday, 8 May 2026 as required by law.
The unaudited financial results for the First Quarter 2026 show a $321.7 million surplus for the Core Government and a $328.1 million surplus for the Entire Public Sector (EPS).
Net Assets of the Government were $2.9 billion, with overall bank account balances of $722.6 million in cash and deposits.
Surplus
The overall EPS Surplus of $328.1 million was $58.3 million or 22% greater than the projected year-to-date operating surplus of $269.7 million.
This favourable position was mainly due to actual revenues being higher than budgeted by $40.4 million for the period, with coercive revenues accounting for $35.2 million.
Year-on-Year Comparison
Comparing year-on-year numbers, the EPS Surplus was $60.0 million higher than that achieved for the same period in 2025.
Statutory Authorities and Government-owned Companies’ (SAGCs) results through the first quarter of 2026 showed a positive variance of $0.4 million when compared to the same period in 2025.
Revenues
The first three months of 2026 generated revenues of $624.9 million, which was $40.4 million more than budgeted expectations and $70.7 million higher than the 2025 year-to-date actual results.
The positive variance in Q1 2026 revenues compared to budget is mainly due to the favourable variance of $35.2 million in coercive revenues, which can be broken down as follows:
It should be noted that the aforementioned fees are regulatory licences due at the beginning of each calendar year and, typically align favourably with the budget through to the first quarter and then stabilize for the remainder of the year.
Stamp Duty – Land Transfers were $4.4 million higher than expected and Land Holding Companies Share Transfer Charges were $4.0 million higher than budgeted due to an increase in the stamp duty rate from 7.5% to 10% effective 1 January 2026, in addition to higher volumes of property transactions coupled with increasing property values. The 2026 duties and charges of $33.8 million and $4.4 million are $7.1 million and $4.3 million more, respectively, than during the comparable period in 2025.
Notwithstanding the overall favourable results in revenues, when compared to the 2026 Budget, there were certain areas that fell short of projected expectations.
These included Other Import Duty with $2.0 million negative variance, Motor Vehicle Drivers Licenses with a $1.9 million negative variance, and Work Permit Fees with a $1.9 million negative variance.
However, when compared to the results for prior year-to-date, Other Import Duties are $4.7 million more and Work Permit Fees are $1.9 million more. Motor Vehicle Drivers Licenses are on par with the same period in 2025.
The first quarter generated coercive revenues of $605.5 million, which was 13%, or $71.2 million, more than the first quarter of 2025 coercive revenue of $534.3 million.
The majority of this change is attributable to higher Domestic Levies on Goods and Services with a $51.3 million positive variance, and increased Levies on Property with a $10.8 million positive variance.
Total Investment Revenue produced $6.3 million, which was $3.4 million more than anticipated for the three-month period. Higher cash balances held by the Government have afforded larger values to be placed on deposit and this has increased income earned on investments.
Expenses
Expenses for the first three months of 2026 amounted to $303.1 million. This amount was $10.5 million less than the year-to-date budget of $313.6 million. Compared to the prior year-to-date actuals, expenses for Q1 are $11.2 million higher.
There were some savings against budget in Personnel Costs by $11.2 million and Supplies & Consumables by $11.6 million.
However, these savings were offset by higher than budgeted levels of expenditure in Outputs from SAGCs by $3.7 million, Outputs from Non-Governmental Suppliers by $5.1 million, and Transfer Payments by $8.0 million.
The report noted that year-to-date savings in Personnel Costs and Supplies & Consumables may not translate into full-year savings and may be due to timing differences. Vacant posts and delayed projects will impact current costs reflected in Personnel Costs and Supplies & Consumables, respectively.
Performance of Statutory Authorities and Government Companies (SAGCs)
SAGCs recorded a combined net Operating Surplus of $6.3 million for the first three months of 2026; which was $7.4 million more favourable than the budgeted Operating Deficit of $1.1 million and which had a positive impact on the overall surplus for the EPS.
Based on the most recent information received from SAGCs, this favourable variance is mainly attributed to results being better than expected at Cayman Airways Limited, the Cayman Islands Airports Authority, the Cayman Islands Monetary Authority, and the Port Authority. These favourable variances were partially offset by the unfavourable performance of the Water Authority.
SAGCs overall performance for Q1 when compared to the prior year-to-date performance is $0.4 million better.
Cash Position
Cash and Cash Equivalents (including fixed deposits with maturity durations not exceeding 90 days) were $99.8 million and Marketable Securities (comprised solely of fixed deposits with maturity durations
exceeding 90 days but not exceeding one year) were $622.8 million, for a total of $722.6 million with
respect to bank account balances.
Due to the significant cash balances on-hand, the Government continues to place funds on fixed deposits.
Conclusion
The financial report concluded that the First Quarter’s performance has positioned the Government to be optimistic about its performance for 2026. However, as planned increases in operating and capital activities occur during the remainder of 2026, the current surplus (as of 31 March 2026) is expected to be significantly reduced.
The Cayman Islands Government’s Unaudited Quarterly Financial Report for the Three-Month Period Ended 31 March 2026 may be found online at: