TCI Government Ends 2025–2026 Fiscal Period with Surplus Due to Underspending

Chair of the Expenditure Committee Hon. Tamell Seymour informed the House of Assembly on Friday March 13th that the Turks and Caicos Islands Government ended the 2025–2026 fiscal period with a budget surplus largely attributed to underspending rather than revenue exceeding projections.

Hon. Tamell Seymour, Member of Parliament for South Caicos and Chair of the Expenditure Committee

Presenting the committee’s findings during debate on the Audited Half-Year Report for April 1 to September 30, 2025, the South Caicos Member of Parliament said the committee met on November 13, 2025, to review the government’s financial performance and hear testimony from officials within the Ministry of Finance, Economic Development, Investment and Trade.

Following its review, the committee concluded that while the government remains in a positive fiscal position, the surplus was primarily the result of expenditure falling below budgeted levels.

Fiscal Position and Revenue Performance

According to Seymour, the government’s fiscal position remains strong despite revenue shortfalls in some areas.

“The overall fiscal position of the Turks and Caicos Islands Government is operating with a surplus due to underspending,” he told the House.

However, the committee noted that revenue performance has trailed expectations in certain sectors, meaning the surplus was not achieved through stronger-than-expected income. While revenue collections performed better than in 2024, they still fell below the government’s targets for 2025.

The committee also pointed to declining tourism activity as a key factor affecting other revenue streams, particularly customs collections and the CPF.

To address possible revenue leakages, Seymour reported that a customs audit had been planned for January, describing it as a “dragnet approach” aimed at strengthening revenue oversight and improving collection systems.

Need to Diversify Revenue

The committee warned that the territory’s finances remain heavily dependent on tourism, and urged government to explore options for broadening the tax base.

Members stressed that diversification would help reduce vulnerability to fluctuations in the tourism sector and create a more resilient fiscal framework.

Key Expenditure Variances

The report highlighted several areas of significant underspending, including:

• Payroll: $6.9 million

• NHIP Transformation: $5.7 million

• Maintenance Expenses: $4.5 million

• Professional Consultancies: $4.2 million

• Grants and Contributions: $2.5 million

• Hospital Provisional Charges: $15 million

In contrast, the government recorded overspending in a few areas, most notably:

• Social Welfare: projected overspend

• Repatriation Expenses: approximately $215,000

Seymour also noted that a new Auditor General has recently been appointed, a development expected to strengthen financial oversight.

Strong Cash Position

Despite the revenue challenges, the government ended the reporting period with a strong cash position of approximately $429 million across its various funds.

Breakdown of the balances included:

• Consolidated Fund: $243 million

• Development Fund: $88.5 million

• Capital Projects and Procurement Challenges

The committee found that many of the top ten capital projects currently underway originated in the 2024 financial year, indicating delays in project execution.

Seymour said that lengthy procurement procedures, sometimes taking up to six months, have slowed project timelines, while ministries frequently request additional funding after projects begin.

The report also pointed to challenges in accurately scoping projects and producing designs before budget approval, which contributes to implementation delays.

Key Recommendations

Among its recommendations, the committee called for:

• Revenue diversification to reduce reliance on tourism

• Improved capital project efficiency through better procurement processes and project planning

• The introduction of in-house estimators and quantity surveyors within the Physical Planning Department to reduce reliance on expensive overseas consultants

• The establishment of specialized caucuses focusing on water, electricity and infrastructure to support sustainable development and address population growth

The committee also urged the government to investigate and control rising healthcare costs, particularly expenses associated with overseas medical treatment.

Concerns Over Consultancy Costs and Hiring

Members additionally raised concerns about consultancy spending, including costs associated with the Office of the Governor, and called for greater scrutiny of such expenditures.

Another issue identified was the difficulty in filling technical positions within government, which the committee said continues to affect efficiency and project delivery.

Seymour told the House that the committee will continue to monitor the implementation of its recommendations and review progress through future financial reports.

“While we acknowledge the efforts of the Ministry of Finance in managing the government’s finances, the committee urges the government to proactively address challenges, particularly in diversifying revenue, improving capital project efficiency, and controlling healthcare costs,” he said.