CI Government Q3 2025 Financial Report Gazetted

The Cayman Islands Government’s Unaudited Quarterly Financial Report for the Nine-Month Period Ended 30 September 2025 was published in the Cayman Islands Gazette on Wednesday, 12 November 2025 as required by law.

The unaudited financial results for the Third Quarter 2025 show a $119.3 million surplus for the Core Government and a $137.4 million surplus for the Entire Public Sector (EPS). 

Net Assets of the Government were $2.6 billion, with overall bank account balances of $392.8 million in cash and deposits.

Surplus           

The overall EPS Surplus of $137.4 million was $36.6 million greater than the projected year-to-date operating surplus of $100.8 million.

This favourable position was primarily due to actual revenues being higher than budgeted revenues by $56.0 million for the period. 

Additionally, Statutory Authorities & Government Companies (SAGCs) contributed $18.1 million to the overall surplus for the EPS; exceeding their estimated results for the first three quarters of 2025 by $19.8 million, when compared to an expected deficit of $1.7 million.

Comparing year-on-year numbers, the EPS Surplus was $11.2 million lower than that achieved for the same period in 2024 with SAGC third quarter results being $5.2 million higher than the prior year. 

Revenues

The first nine months of 2025 generated total revenues of $970.4 million, which was $56.0 million more than budgeted expectations and $56.5 million higher than the 2024 year-to-date actual results.

The positive variance in 2025 total revenues to date compared to budget can be primarily attributed to a favourable variance of $43.6 million in coercive revenues, which is can be broken down as follows:

·         A $24.8 million positive variance in Other Company Fees – Exempt Companies) due to increased registration. When compared to prior year-to-date performance, the 2025 results were $19.3 million better;

·         A $15.2 million positive variance in Partnership Fees owing to higher than anticipated registration in this category. Compared to the prior year actual there is an $9.0 million positive variance;

·         A $9.7 million positive variance in Private Fund Fees due to an increase in the volume of funds registered. The current year results for these fees are $6.6 million higher, when compared to actual results for the prior year-to-date performance;

·         A $10.0 million positive variance in Stamp Duty – Land Transfers due to higher volumes of property transactions coupled with increasing property values. The 2025 duties of $48.1 million are $2.5 million more than the comparable period in 2024; and

·         A $7.5 million positive variance in DITC Penalties and Fines, which are an unbudgeted revenue source as fines charged on breaches of the applicable laws. The 2025 fines are $4.7 million more than same period in 2024.

Notwithstanding the overall favourable results in coercive revenues collected, when compared to the 2025 Budget, there were certain areas that fell short of projected expectations including:

·         A $17.2 million negative variance in Other Import Duty, although this category produced $6.1 million more than the same period in 2024; and

·         A $12.7 million negative variance in DITC Filing Fees, which are a new coercive revenue that was anticipated to commence in 2025 but has been deferred.

Investment Revenues produced $16.9 million, which was $9.8 million more than the 2025 budgeted revenue for the nine-month period. Higher cash balances have afforded higher values to be placed on fixed deposit and this has driven higher income earned on investments.

Expenses

Expenses for the first nine months of 2025 amounted to $851.1 million. This amount was $39.1 million more than the year-to-date budget of $812.0 million. Compared to the prior year-to-date actuals, total expenses for 2025 are $72.9 million higher.

Costs relating to personnel for the first nine months of 2025 amounted to $377.6 million, which were $14.3 million less than the budgeted $391.9 million mainly due to vacant posts across several Ministries, Portfolios and Offices. The 2025 personnel costs are $36.5 million more than for the same period in 2024, partly due to the Cost-of-Living Adjustments awarded in January 2025.

Supplies and Consumables costs were $115.1 million for the period and were $9.0 million less than the year-to-date budget. Compared to the prior year-to-date costs of $110.6 million, the 2025 expenses are $4.5 million more. It is anticipated that as more projects come online during the remaining quarter of 2025, costs will align closer to the amounts anticipated in the full-year budget.

The savings against budget in staff costs and supplies were offset by higher-than-budgeted levels of expenditure in Outputs from SAGCs by $15.7 million, Outputs from Non-Governmental Suppliers by $29.3 million, and Transfer Payments by $31.0 million.

Payments to the Health Services Authority (HSA) exceeded the original year-to-date budget by $18.0 million. This adverse variance with respect to the HSA is mostly due to actual costs for the Care of Indigents exceeding the budget for this category.

Outputs from Non-Governmental Suppliers of $58.9 million were $29.3 million more than the year-to-date original budget, mainly due to “NGS 55 Tertiary Care at Local and Overseas Institutions” being $27.4 million more than the year-to-date budget.

Transfer Payments of $79.2 million were $31.0 million more than budgeted for the nine-month period. This variance is mainly due to overages in spending on Financial Assistance by $15.7 million, Scholarships and Bursaries by $12.5 million and Seaman Ex-Gratia by $3.7 million.

Cash Position

Cash and Cash Equivalents (including fixed deposits with maturity durations not exceeding 90 days) were $93.0 million and Marketable Securities (comprised solely of fixed deposits with maturity durations exceeding 90 days but not exceeding one year) were $299.8 million, for a total of $392.8 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

In conclusion, the report noted that the Third Quarter’s performance has positioned the Government to be optimistic about its overall financial performance for 2025.

However, the report acknowledged that due to planned increases in operating and capital activities during the final quarter of 2025, the surplus as of 30 September 2025 is expected to be significantly reduced.

The Cayman Islands Government’s Unaudited Quarterly Financial Report for the Nine-Month Period Ended 30 September 2025 may be found online at: https://www.gov.ky/publication-detail/unaudited-quarterly-financial-report---nine-month-period-ended-30-september-2025.-(ex88,-s1)