Finance minister Rolston Anglin has said the Cayman Islands Government plans to borrow up to $236 million to fund capital projects over the next two years.
He detailed this and other elements of the 2026-2027 Budget during a sitting of the Parliament of the Cayman Islands on Thursday, 6 November.
He told members that it is a “truthful budget” that properly funds critical services previously under-budgeted, adding that it represents “a true turning point”.
It is a “steadfast, pragmatic path forward toward a stronger and more secure Cayman Islands for all,” Anglin said to legislators.
Revenue and borrowing
Operating revenue for 2026 is forecast at $1.26 billion, rising to $1.32 billion in 2027, Anglin said.
New revenue measures are projected to generate $72.5 million in 2026 and $99.9 million in 2027 from financial services fees and domestic charges.
The government plans to borrow up to $124 million in 2026 and $112 million in 2027 – totalling $236 million – exclusively for capital projects.
Anglin emphasised the borrowing will not fund operating expenditures.
“Just as we do in our personal lives, when we have significant and meaningful capital infrastructure that is required, such as building a home, people borrow,” Anglin said.
He noted the government’s debt-to-GDP ratio will average 8.5%, “an enviable metric that few countries in the world can match”.
Major expenditures
Personnel costs will consume $569.3 million in 2026 and $585.3 million in 2027 for civil service salaries, pensions and health insurance.
Supplies and consumables are budgeted at $194.1 million and $201.9 million respectively.
Healthcare spending includes $77.6 million in 2026 for CINICO to provide health insurance for civil service pensioners and seafarers, and $65.2 million to the Health Services Authority for medical services.
The Cayman Islands Monetary Authority will receive $32.8 million in 2026 to enhance regulatory capacity “to keep abreast of an ever-changing international regulatory regime”.
Cayman Airways will receive $18.6 million annually for international and domestic airlift, while forecast to run operating deficits of $16.3 million in 2026 and $16.2 million in 2027.
Social programmes and capital investments
For 2026, transfer payments totalling $82 million annually will fund scholarships ($37.3 million), financial assistance and home repairs ($25.1 million), and ex-gratia payments to approximately 975 seamen and veterans ($10 million).
Tertiary medical care for uninsured and indigent persons will cost $43 million annually, while the public schools meals programme requires $9 million per year.
The government plans capital investments of $139.5 million in 2026 and $125.3 million in 2027, including:
- $21.4 million in 2026 for completing the new high school in Cayman Brac and expanding primary schools
- $14.1 million for road network improvements
- $8 million to the National Housing Development Trust for affordable homes
Fiscal reforms and compliance
Anglin announced plans to transition from output-based to outcome-based budgeting by 2028-2029, linking resources directly to results achieved rather than activities performed.
The government is considering raising the threshold for mandatory independent advice on public-private partnerships from $10 million to $25 million, recognising “the rising scale and cost of infrastructure projects”.
Despite smaller surpluses than previous budgets, the government forecasts full compliance with fiscal responsibility principles:
- Cash reserves will cover 91.6 days of operating expenses in 2026 (above the 90-day requirement)
- Debt service ratios of 6.5% in 2026 remain well below the 10% threshold
- Net debt ratio of 23.4% in 2026 stays far below the 80% maximum
Anglin attributed the smaller surpluses to honest budgeting that properly funds previously under-budgeted items, particularly healthcare and social assistance programmes.
“Whilst these surpluses may not be as large as those in previous years’ budgets delivered to this honourable house, they are through careful and honest budgeting,” he said.
