The unaudited financial results for the six-month period ended 30 June 2026 show a $244.4 million surplus for the Core Government and a $252.3 million surplus for the Entire Public Sector (EPS).
Net Assets of the Government were $2.8 billion, with overall bank account balances of $588.9 million in cash and deposits.
Surplus
The overall EPS Surplus of $252.3 million was $67.3 million, or 36%, greater than the projected year-to-date operating surplus of $185.0 million.
This favourable position was primarily due to actual revenues being $43.8 million higher than budgeted for the period, including a $33.3 million favourable variance in coercive revenues.
Year-on-Year Comparison
Comparing year-on-year results, the EPS Surplus was $50.8 million higher than that achieved for the same period in 2025.
Statutory Authorities and Government Companies’ (SAGCs) results through the second quarter of 2026 showed a positive variance of $0.4 million when compared to the same period in 2025.
Revenues
The first six months of 2026 generated total revenues of $856.2 million, which was $43.8 million more than budgeted expectations and $89.9 million higher than the 2025 year-to-date actual results.
The positive variance in year-to-date 2026 revenues compared to budget was mainly due to the favourable variance of $33.3 million in coercive revenues. Key contributors were:
The report noted that the financial-services fees listed above are regulatory licences due at the beginning of each calendar year and typically align favourably with budget through the second quarter before stabilizing for the remainder of the year.
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 a $3.9 million negative variance, Motor Vehicle Drivers Licenses with a $4.0 million negative variance, Special Economic Zone Grant Fee with a $3.4 million negative variance, and Work Permit Fees with a $3.7 million negative variance.
Compared with prior year-to-date results, Other Import Duties were $3.8 million higher and Work Permit Fees were $0.8 million lower. Motor Vehicle Drivers Licenses and Special Economic Zone Grant Fee were on par with the same period in 2025.
The second quarter generated coercive revenues of $211.7 million, which was 9%, or $17.8 million, more than the second quarter of 2025 coercive revenue of $193.9 million.
Most of this change was attributable to increased Levies on Property, with a $25.5 million positive variance, partially offset by a $6.8 million decline in Import Duties.
Sales of Goods and Services of $26.2 million were $3.6 million more than the 2026 projections, and $1.8 million more than the prior year-to-date results.
Total Investment Revenue produced $12.5 million, which was $6.7 million more than budgeted for the six-month period. Higher cash balances held by the Government enabled larger values to be placed on deposit, increasing income earned on investments.
Foregone revenues for the second quarter amounted to $4.7 million. Many foregone revenues are statute-based (e.g. stamp duty waivers for Caymanian property buyers) and are granted once certain specified criteria in statutes are satisfied, whilst others are based on judgement and discretion.
Expenses
Total Operating, Financing and Non-Operating Expenses for the first six months of 2026 amounted to $611.8 million. This was $13.4 million less than the year-to-date budget of $625.2 million and $39.5 million higher than the prior year-to-date actuals.
There were savings against budget of $19.9 million in Personnel Costs and $14.0 million in Supplies and Consumables.
These savings were offset by higher than budgeted expenditure in Outputs from SAGCs by $7.5 million, Outputs from Non-Governmental Suppliers by $8.4 million, and Transfer Payments by $12.2 million.
The report noted that year-to-date savings in Personnel Costs and Supplies and Consumables may not translate into full-year savings and may reflect timing differences. Vacant posts and delayed projects affect the current costs in these categories.
Performance of Statutory Authorities and Government Companies (SAGCs)
SAGCs recorded a combined net Operating Surplus of $7.9 million for the first six months of 2026. This was $10.1 million more favourable than the budgeted Operating Deficit of $2.2 million and had a positive impact on the overall EPS surplus.
Based on the most recent information received from SAGCs, this favourable variance was mainly attributed to better than expected results at the Cayman Islands Airports Authority, Cayman Islands Monetary Authority, Maritime Authority of the Cayman Islands, National Roads Authority, and Port Authority. These favourable variances were partially offset by the unfavourable performance of Cayman Airways, the Health Services Authority, and the Water Authority.
SAGCs’ overall performance through the second quarter was $0.4 million better than the prior year-to-date performance.
Cash Position
Cash and Cash Equivalents, including fixed deposits with maturities not exceeding 90 days, were $170.8 million.
Marketable Securities, comprising fixed deposits with maturities exceeding 90 days but not exceeding one year, were $418.2 million, bringing total bank account balances to $589.0 million.
The Government’s debt balance was $479.0 million at 30 June 2026, of which $43.0 million was due within one year. The report noted that the debt balance will decline with scheduled principal repayments being made. Cash and deposits exceeded debt at the end of the period.
Due to the significant cash balances on hand, the Government continues to place funds on fixed deposits.
Conclusion
The financial report concluded that the second quarter’s performance has positioned the Government to be optimistic about its performance for 2026. However, operating costs are expected to increase as vacant positions are filled and additional projects become operational. If planned activities and projects proceed as anticipated, the surplus at 30 June 2026 is expected to decrease by year-end – a trend which is entirely consistent with past years.
Minister for Finance and Economic Development Hon. Rolston Anglin stated, “The results for the 2026 half-year are extremely encouraging. Revenues have outperformed the budgeted expectations. This demonstrates a strong, confident economy. We have underspent on the expenditure side as we have been responsible stewards of the public purse. So overall to 30 June I am extremely pleased with the results, but the Government will, as ever, remain vigilant over the second half of 2026.”