The Cayman Islands Government (CIG) reported a CI $252.3 million public sector surplus for the first half of 2026, driven by stronger-than-expected revenue from property transactions, financial services activity and visitor arrivals. The figures covered the six months that ended June 30, 2026, and were published in the Cayman Islands Gazette on August 7.

Core Government recorded a CI $244.4 million surplus, while the wider Cayman Islands public sector, which included statutory authorities and Government companies, finished CI $67.3 million above budget.

Revenue Above Budget

CIG collected CI $856.2 million in revenue during the first six months of the year. That was CI $43.8 million more than expected and CI $89.9 million above the same period in 2025. The report said the stronger result came from several of Cayman’s main revenue streams, not one source.

The biggest boost came from compulsory revenue, which was CI $33.3 million above budget. Financial services fees also rose. Mutual Fund Administrators Fees were CI $7.9 million above budget. Private Fund Fees were CI $7.1 million higher than expected, Other Company Fees from exempt companies were CI $5.5 million above budget, and Security Investment Business Licences were CI $3.5 million higher than projected.

Finance Minister, Rolston Anglin MP, said the results reflect the strength of the economy.

"The results for the 2026 half-year are encouraging. Revenues were above budget. This shows a strong economy."

An April 2026 economic assessment by CIBC Caribbean also pointed to continued strength in the Cayman economy. The report cited an Economics and Statistics Office projection that the economy would grow by 2.2% in 2026.

“Continued demand for finance and insurance services, alongside greater activity in tourism and related services is expected to sustain growth,” the report said.

CIBC Caribbean also reported that Government debt had fallen to approximately 6% of GDP as of September 2025.

Property Transactions and Tourism Added to the Surplus

The property market was one of the clearest drivers. Stamp Duty on Land Transfers generated CI $80.9 million, which was CI $22 million more than budgeted. Land Holding Companies Share Transfer Charges added another CI $5.3 million, or CI $4.6 million above expectations.

CIG said the result reflected higher transaction volumes and property values in Grand Cayman, along with the increase in stamp duty from 7.5% to 10% on 1 January 2026. Stamp duty on land transfers was up CI $32.7 million compared with the first half of 2025. The increase reflected higher transaction volumes, higher property values and the rise in stamp duty from 7.5% to 10% on 1 January 2026.

Tourism was also ahead of budget. Tourist Accommodation Charges were CI $3.7 million above plan, with the Government citing record visitor arrivals. Air arrivals were approximately 11% higher than in the same period last year, while cruise arrivals increased by 6%, with the Government citing record visitor arrivals.

Not every revenue line moved in the same direction. Other Import Duty was CI $3.9 million below budget, Motor Vehicle Drivers Licences were CI $4 million below expectations, Special Economic Zone Grant Fees fell CI $3.4 million short of budget, and Work Permit Fees were $3.7 million below projections. Even so, some of those categories remained close to or above their 2025 levels.

Spending Stayed Below Budget, For Now

The other side of the surplus was expenditure. Government spent CI $611.8 million on operating, financing and non-operating expenses in the first half of 2026. That was CI $13.4 million below the budgeted CI $625.2 million. Personnel Costs were CI $19.9 million below budget, while Supplies and Consumables were CI $14 million lower than planned.

Mr. Anglin said the Government had managed its spending carefully.

"We have underspent on the expenditure side as we have been responsible stewards of the public purse. So overall to June 30 I was extremely pleased with the results, but the Government will, as ever, remain vigilant over the second half of 2026."

The report cautioned that some of the savings could prove temporary. Vacant posts and delayed projects had lowered spending in the first half, but those same lines could rise later as positions were filled and projects moved into operation. Spending was already higher than budgeted in some areas, including outputs from statutory authorities and Government companies, non-governmental suppliers and transfer payments.

Public Sector Finances Remained in a Strong Position

The balance sheet shows why the Government remains comfortable at the halfway mark. At the end of June, cash and cash equivalents stood at CI $170.8 million and marketable securities, including fixed deposits, stood at CI $418.2 million. Together, that came to about CI $589 million.

Government debt stands at CI $479 million, including CI $43 million due within one year. That means the Government held more cash and deposits than debt at the end of the period. Net Government assets stood at approximately CI $2.8 million. Those figures suggested public finances were in a relatively strong position, even if the full-year picture was still uncertain.

The wider public sector also helped lift the headline result. Statutory Authorities and Government Companies recorded a combined CI $7.9 million operating surplus, compared with a budgeted CI $2.2 million deficit. The Cayman Islands Airport Authority, Cayman Islands Monetary Authority, Maritime Authority of the Cayman Islands, National Roads Authority and Port Authority were among the bodies that performed better than expected.

Those gains were partly offset by weaker results from Cayman Airways, the Health Services Authority and the Water Authority. Even so, the wider public sector was CI $400,000 ahead of its combined performance in the first half of 2025.

What Happens Next

The Government said it would stay alert through the second half of 2026. It expected operating costs to rise as vacant positions were filled and additional projects became operational. If that happened as planned, the surplus recorded on June 30 was expected to decline by year-end.

That warning matched the report’s broader message: Cayman had reached the midpoint of 2026 in a strong financial position, but the final outcome for Cayman Islands public finances would depend on how revenue and spending moved over the rest of the year. The first half showed the strength of the islands’ economy. The second half was likely to test how long that strength could last.