The Cayman Islands public sector recorded a CI$252.3 million surplus for the first six months of 2026, running CI$67.3 million ahead of the government’s budget for the period as stronger revenues and lower-than-expected spending boosted the midyear result.
Core Government accounted for CI$244.4 million of the surplus, compared with a budgeted CI$187.2 million, while statutory authorities and government companies posted a combined CI$7.9 million surplus. The overall public-sector result was up from CI$201.5 million during the first half of 2025, according to the government’s unaudited second-quarter financial report.
Core Government revenue reached CI$856.2 million through June, CI$43.8 million above budget and about CI$89.9 million higher than a year earlier. Coercive revenue, which includes duties, fees and other compulsory charges, totaled CI$817.3 million and was CI$33.3 million above budget. Higher-than-expected mutual fund administrator and private fund fees contributed to the increase, with the government citing growth in the number of registered funds.
Property-related revenue also exceeded projections. Stamp duty on land transfers was CI$22 million above budget, while charges on share transfers involving land-holding companies were CI$4.6 million higher than expected. The government attributed the increases to the stamp duty rate rising from 7.5% to 10% on Jan. 1, along with higher transaction volumes and property values. Tourist accommodation charges were CI$3.7 million above budget, which the report linked to an approximately 11% year-over-year increase in air arrivals and a 6% rise in cruise arrivals.
Core Government expenses totalled CI$611.8 million, CI$13.4 million below budget but CI$39.5 million higher than in the first six months of 2025. Personnel costs were CI$19.9 million below projections, largely because of vacant government positions, while supplies and consumables were CI$14 million under budget. Those savings were partly offset by spending above budget on government entities, non-government suppliers and transfer payments.
The government ended June with CI$588.9 million in cash and deposits, including CI$394.6 million in operating cash and deposits and CI$194.4 million in reserves and restricted deposits. Outstanding debt stood at about CI$479 million, meaning cash and deposits exceeded government debt at the end of the second quarter. The report also said CI$29.2 million in loan principal had been repaid during the first half of the year.
Government officials cautioned that the favourable midyear position should not be treated as an indication of the final 2026 result. The report said savings in personnel and supplies may reflect timing differences, with costs expected to move closer to budget as vacant posts are filled and delayed projects come online.
