The Cayman Islands Government’s Unaudited Quarterly Financial Report for the Nine-Month Period Ended 30 September 2026 was published in the Cayman Islands Gazette on Friday, 6 November 2026, as required by law.
The unaudited results show a surplus of $134.3 million for Core Government and $142.4 million for the Entire Public Sector (EPS). Government’s net assets were $2.7 billion, and its bank account balances, including fixed deposits, totalled $433.7 million.
Surplus
The EPS surplus of $142.4 million was $51.5 million higher than the $90.9 million surplus budgeted for the first nine months of 2026. Core Government revenues were $35.4 million above the year-to-date budget, while total operating, financing and non-operating expenses were $4.6 million below budget. Statutory Authorities and Government Companies (SAGCs) recorded a combined operating surplus of $8.1 million.
Compared with the same period in 2025, the EPS surplus increased by $5.0 million. Core Government revenues were $95.0 million higher, while expenses were $80.1 million higher than in the prior-year period.
Revenues
Core Government generated total revenues of $1.065 billion in the first nine months of 2026. This was $35.4 million above budget and $95.0 million, or 10%, higher than the same period in 2025. Coercive revenues of $1.008 billion were $20.6 million above budget and $94.2 million higher than the prior-year period.
The favourable revenue position reflected strong results in financial services fees, property-related revenues and tourism. Property-related revenues benefited from high-value developments, updated property valuations and the 10% stamp duty rate applied to most transactions above $2 million.
Compared with the first nine months of 2025, property transaction volumes increased by 26.1%, the aggregate value of transactions rose by 48.2%, and average transaction values increased by 17.7%.
Tourist Accommodation Charges were $4.7 million above budget, supported by year-to-date increases of approximately 11% in air arrivals and 4% in cruise arrivals compared with 2025. Financial services fees also exceeded budget, reflecting fee changes and an increase in registrants in several categories.
Some revenue categories remained below budget. Import duties were affected by lower-than-projected import volumes, while Gasoline and Diesel Duty was lower in part because of the temporary fuel duty waiver, which began on 1 June and was later extended through 31 December 2026.
Coercive revenues in the third quarter were $190.3 million, $5.2 million, or 3%, higher than in the third quarter of 2025.
Expenses
Core Government’s total operating, financing and non-operating expenses were $931.2 million for the nine-month period. This was $4.6 million below the year-to-date budget, but $80.1 million higher than expenditure in the same period of 2025.
Personnel costs totalled $397.6 million, $29.2 million below budget, mainly because of vacant posts across Ministries, Portfolios and Offices. Supplies and Consumables were $127.8 million, $16.1 million below budget, largely due to lower-than-planned spending on purchased services.
These favourable variances were partly offset by higher-than-budgeted expenditure on outputs from SAGCs ($13.5 million negative variance), outputs from non-governmental suppliers ($10.3 million negative variance) and transfer payments ($25.0 million negative variance). Increased costs included tertiary health care at local and overseas institutions, financial assistance, scholarships and bursaries, and other support payments.
The Q3 Financial Report cautions that savings in personnel costs and supplies may reflect timing differences and may not translate into full-year savings. Costs could rise as vacant posts are filled and delayed projects begin.
Cash Position
At 30 September 2026, Government held $433.7 million in cash and deposits. This comprised $239.7 million in operating bank account balances and $194.0 million in reserve and restricted deposits. The balance included $108.5 million in cash and cash equivalents and $325.2 million in marketable securities, principally fixed deposits.
Government’s debt balance was $468.2 million at 30 September 2026, of which $43.0 million was due within one year. Net assets stood at $2.7 billion.
Full-Year Outlook
While the third-quarter results provide a positive outlook, the surplus recorded at 30 September is expected to reduce significantly as planned operating and capital expenditure is implemented during the final quarter.
Conclusion
The Government’s results for the first nine months of 2026 show an EPS surplus above budget, supported by revenues exceeding projections and a positive contribution from SAGCs. The financial report also highlights the importance of considering year-to-date results alongside expenditure planned for the remainder of the year.
The Cayman Islands Government’s Unaudited Quarterly Financial Report for the Nine-Month Period Ended 30 September 2026 may be found online at: https://gov.ky/w/unaudited-quarterly-financial-report-nine-month-period-ended-30-september-2026-ex81-s3