PPM: Government’s Fee Reconsideration Confirms Budget Measures Were Rushed

The People’s Progressive Movement (PPM) says Government’s decision to reconsider several of its proposed fee increases reinforces concerns raised by the Opposition from the outset of the Budget debate: that the financial strategy being pursued is rushed, unclear, and risks placing unnecessary strain on Caymanians. From the moment these new and increased fees were introduced, the PPM cautioned that the measures appeared to lack sufficient economic modelling and meaningful consultation — particularly with small business owners and Caymanian stakeholders. Government’s reconsideration now signals that those concerns were well-founded. “This is exactly what we warned about,” said Hon. Joseph Hew, Leader of the Opposition. “You cannot introduce sweeping fee increases, present them as necessary for the country’s finances, and then reconsider them after public concern without creating uncertainty. Caymanians deserve a Government that plans properly, consults properly, and delivers a Budget that is credible from day one. That is precisely why the PPM abstained from supporting these measures — because the process was rushed and the financial justification was not clear.” Hon. Roy McTaggart, the PPM’s Finance spokesperson and former Minister of Finance, said the Government’s reversal raises serious concerns about whether the proposed increases were supported by proper financial analysis. The inescapable conclusion is that they weren’t. “When revenue measures are introduced and then reconsidered, it calls into question the reliability of the projections underpinning the Budget and creates unnecessary uncertainty and instability for both the public and the business community,” McTaggart said. This is not about political point-scoring. It is about financial credibility and responsible governance. When a Budget is presented, projected revenues from new and increased fees form a critical part of the country’s fiscal framework. If those measures are now being scaled back, the public deserves clear answers: • How will any resulting revenue shortfall be addressed? • Will expenditure be adjusted? • Will projects be deferred? • Or will alternative revenue measures be introduced? The Premier himself acknowledged during Finance Committee that consultation was still underway on the Government’s proposed revenue measures. At the same time, Government is proposing to borrow $236 million over 2026 and 2027 without clearly outlining how these funds will be used — a lack of transparency that the PPM has repeatedly highlighted as unacceptable. These borrowings would push national debt to a record $634 million by the end of 2027, with Government also signalling a further $85 million in borrowing in 2028, potentially raising total debt to approximately $655 million. In other words, Caymanians are being asked to accept a financial strategy of tax, borrow, and spend — while key revenue measures are still being reconsidered after public concerns were raised. Sound fiscal management requires careful planning before measures are announced — not after backlash. The PPM warned that abrupt fee increases would impact households already facing cost-of-living pressures and create uncertainty in the business community. Budget stability and investor confidence depend on predictability, transparency, and disciplined execution. The Cayman Islands deserves steady financial leadership, thoughtful consultation, and policies grounded in long-term sustainability. The PPM remains committed to advocating for responsible budgeting and balanced solutions that protect both our people and our economic future.