Grand Cayman, 26 April 2023 – Premier and Minister for Finance & Economic Development Hon. G. Wayne Panton presented the PACT Government’s 2024-26 Strategic Policy statement to Parliament today (Wednesday, 26 April).

           The Cayman Islands Government Strategic Policy Statement (SPS) outlines the Government’s policy priorities for the next three financial years and establishes the foundation for the development of the national budgets for the next two financial years.

The SPS is also an opportunity to present the Government’s objectives and policies through its Broad and Specific Outcomes, which establish the purpose for the upcoming budget allocations.

The SPS is prepared in accordance with the Public Management and Finance Act (2020 Revision), and is in compliance with the Framework for Fiscal Responsibility (the “FFR”), that was agreed with the United Kingdom Government in 2011.

Introducing the 2024-2026 SPS, Premier Panton said, “Today, we stand before this Honourable House with a growing economy, a budget surplus and ushering in an economy that has created thousands of jobs and opportunities for our people. Now, this document shows that it is incumbent upon us to manage our growth. We are called to be responsible with the people’s money. We are called to reject imprudence. But, we are also called to deliver real results that improve transportation in our society, address the cost of living challenges, improve education, take care of our seniors, provide better and more affordable healthcare and build the necessary infrastructure that will build a healthier, more sustainable country.”

Noting that “we are here to responsibly improve the quality of life for this and future generations of Caymanians,” the Premier said his Government has refocused its efforts on five “succinct and impactful Broad Outcomes” over the SPS period, which are:

1. Improve Quality of Life for Caymanians
2. Enhance Competitiveness while Meeting International Standards;
3. Future Proof to Increase Resiliency
4. Modernise Government to Improve Public Sector Performance
5. Protect and Promote Caymanian Culture, Heritage and Identity.

Premier Panton explained the core rationale for the development of the Broad Outcomes. He said, “First and foremost, we have put the most important aspect of our country – our people, at the epicentre of all that we do. I use the word “epicentre” intentionally here. It’s not sufficient to say that we have put people ‘first’. Instead, all that we do and all that we strive for emanates from the needs and wishes of our people. They are at the heart of every Broad Outcome, every Specific Outcome, and every project. If what we are doing doesn’t benefit, support, encourage, enrich, educate, and empower our people – there is not any point or purpose in it.”

The Premier outlined the current state of the economy, noting economic growth as measured by GDP was 3.7% in 2022 and 4.0% in 2021, while in 2020 the economy contracted by 5.1%. The real GDP per capita in 2022 was estimated at US$70,790, higher than the United States and other advanced economies.

However, he noted that economic success isn’t the sole measure of progress.

Premier Panton said, “While our economic success is clear… It is important to remember, as former UK Prime Minister Tony Blair once said, “Real progress cannot be measured by money alone. We must ensure that economic growth contributes to our quality of life, rather than degrading it.”

He continued, “We can measure success with many metrics, but one of our objectives in this Government was to use a balanced approach to measure success, to ensure our success is in fact making the lives of our citizens better and to find ways to measure that quality of life that Tony Blair is talking about.”

Highlighting economic forecasts over the SPS period, Premier Panton noted expected growth to be 2.3% for 2023 and over the SPS period at 1.6% in 2024, and an average of 2.1% for 2025 and 2026.

An unemployment rate of 2.2% is projected for 2023 with an expected average of 2.5% annually between 2024 and 2026.

The Consumer Price Index or CPI, which measures the change in retail prices, is expected to increase by 5.2% in 2023; by 2.5% in 2024; 2.4% in 2025; and by 2.0% in 2026.  

Government’s Total Operating Revenue for the SPS forecast period (2024 to 2026) is forecast to be $3.3 billion.  Total Operating Expenditure for the SPS forecast period is forecast to be $3.0 billion, with the Government committed to $300.0 million in planned Capital Investments and Equity Investments.

Following the acceptance of the SPS in Parliament, the Government will prepare its detailed plan and estimates for the 2024-25 Budget and a forecast for 2024-25 in the Fourth Quarter of this year.

The full 2024-2026 Strategic Policy Statement may be found at:

https://www.gov.ky/sps

The Premier’s remarks may be found at:

https://www.gov.ky/news/press-release-details/premier-panton-presents-sps-2024-2026

https://www.gov.ky/news/press-release-details/tabling-remarks-sps