Which statement is true regarding the financial relationship between the Cayman Islands and the UK?

The statement that the Cayman Islands does not depend on the UK for budgetary contributions is accurate. The Cayman Islands have developed a robust and independent financial system that allows them to manage their own budget without the need for financial support from the UK. The territory has a thriving economy primarily due to its financial services sector, including banking, insurance, and tourism, which generate significant revenue and contribute to its self-sufficiency.

Historically, while the UK has provided oversight in certain areas, the financial relationship is characterized by the Cayman Islands’ autonomy. They do not receive annual grants nor do they rely on the UK for budgetary support as many other Overseas Territories might. Additionally, financial decisions within the Cayman Islands are made locally, reflecting their established governance structure and commitment to self-administration. This independence in financial management is pivotal to their status as a leading offshore financial center.