Statement by the Premier

Revenue Measures

The Ministry of Finance has worked in consultation with the financial services industry; the Financial Services Council, an advisory body of representatives from both the public and private sectors; Cayman Finance and the Cayman Islands Monetary Authority, to develop draft revenue measures that are in line with the budgetary agreement between the Cayman Islands and the UK.

In an email to industry that was sent on Monday afternoon (19 November), the Ministry outlined the measures as they stand to date. These draft revenue measures will continue to be refined, with the expectation that they will be finalised by the end of this week.

I thank the Ministry, as well as all involved in this multifaceted process, for working toward achieving our mutual goal of a stable national budget, and a continuously healthy financial services industry. I particularly thank Legislative Drafting for its work in preparing multiple pieces of legislation under a tight timeframe, and with limited staff.

As the public is aware, the process of developing a budget involves many moving parts, chief of which are revenues and expenditures. For the 2012/13 budget year Government placed a renewed emphasis on expenditure reductions, which have mitigated the revenue measures that are now in consideration.

With the passage into law of the Framework for Fiscal Responsibility, and with the balancing of expenditure reductions and the draft revenue measures, the Cayman Islands is in a stable budgetary position in comparison with other major economies. Government will continue to engage with industry and other key stakeholders as it works within a continually improving budget development process