The Government wishes to correct the suggestion in a recent media report that more than half of the CI$252.3 million mid-year surplus has already been spent. This assertion is incorrect and was certainly not the case when the relevant article was published.
Finance Committee approved up to CI$134.3 million in additional spending in Parliament on 30 June 2026. This approval sets a spending limit; it does not mean that CI$134.3 million has been paid out. As projects and programmes move forward, the amount actually spent may be considerably less than the amount approved.
The timing is also important. The supplementary appropriations were approved by Finance Committee in Parliament on 30 June, the final day covered by the second-quarter financial report published on 7 August.
In simple terms, the report records revenue and expenditure up to 30 June, while the authority for the additional spending was not granted until that same date. The CI$134.3 million could not have been spent under that authority before it was approved. The second-quarter report therefore does not support any suggestion that the supplementary appropriations had already been spent.
It is also important to understand what the money was approved for. Of the CI$134.3 million, CI$114 million relates to capital and equity investments, while CI$20.3 million relates to operational spending.
Operational spending covers the day-to-day costs of delivering public services and impacts Government’s Operating Surplus. Capital and equity spending is different. It is used for longer-term investments such as schools, roads, land, infrastructure and equipment and such expenditures do not impact Government’s Operating Surplus.
It is incorrect to subtract the entire CI$134.3 million from the Operating Surplus figure.
Minister for Finance & Economic Development and Chairman of Finance Committee, Hon. Rolston Anglin, explained:
“We must compare like with like—or, put simply, apples with apples. Day-to-day operational spending impacts the Operating Surplus. Capital investments in assets such as schools, roads, land and infrastructure are accounted for differently and these do not impact Government’s Operating Surplus calculation. Capital investment expenditures reduce Government’s bank account balances.
“Treating the full CI$134.3 million as if it were day-to-day spending gives a misleading picture of the Government’s finances. Only CI$20.3 million of that amount was approved for day-to-day operational spending.
“The timing also makes the position clear. The second-quarter report covers the period ending 30 June, which is the same day Finance Committee approved the supplementary appropriations. The money could not have been spent under an approval that was only granted on 30 June. It stretches credulity to its limit to suggest Government spent $134 million in a single day.
“It is equally important to distinguish between approval to spend and money actually spent. Finance Committee set the maximum amount the Government may spend. It did not write a cheque for CI$134.3 million, and it does not mean that the full amount will necessarily be spent.”
The approved funding supports important national priorities. The capital and equity allocations include educational facilities, strategic and conservation land purchases, road and drainage improvements, Port Authority infrastructure and equipment, and Cayman Airways’ operational resilience.
The operational allocations support financial assistance for families, the Summer School Programme, preparations for the Fifth Round CFATF Mutual Evaluation, agriculture, youth, sports and cultural programmes, the Fire Service and workforce development.
The Government has consistently explained that the CI$252.3 million recorded at the end of June 2026 is an unaudited mid-year result, not the expected result for the full year. The Surplus will decline during the second half of 2026 as planned projects and programmes move forward.
After taking the supplementary appropriations into account, the Government continues to forecast an operating surplus of approximately CI$10.5 million at the end of 2026, but the Surplus forecast will be re-assessed monthly, for the remainder of 2026.
The Government does not require any borrowing beyond the amount already approved in the 2026 Budget. Cash reserves are expected to remain at approximately 94 days of operating expenses, and the Government remains compliant with all six Principles of Responsible Financial Management.
The facts are clear: approval to spend is not the same as money already spent. The additional authority was granted only on the final day of the reporting period, and long-term capital investment cannot properly be treated as though it was day-to-day operational spending.