Unbiased look at the Sint Maarten Elections
What was billed as the first-ever budgetary retreat in St. Maarten (see Saturday paper) seems like a good idea. Synchronisation among the seven ministries in that sense is certainly always desirable for obvious reasons.
Recent experience has shown it's also good to begin preparations well ahead of time and the meeting was about the 2016 budget. However, taking into account that the draft is supposed to be presented to Parliament at the start of September, it's actually not so early.
Of course, there are more immediate concerns, including remaining issues with the 2015 version, almost halfway into the year. Finance Minister Martin Hassink must substantiate an additional 15 million guilders in revenues to reach the total amount of NAf. 445 million and must settle the combined outstanding debts of more than NAf. 200 million to Social and Health Insurance SZV and General Pension Fund APS.
The Committee for Financial Supervision CFT had set a June 1 deadline for both matters, but a few additional days probably won't make a huge difference. When it comes to APS and SZV, Minister Hassink said that in any case he would make decisions and come to agreements only if they were financially viable.
The latter is no doubt admirable, but what happens should there be none in the near future remains a big question mark. CFT is likely to advise the Kingdom Council of Ministers to issue some type of instruction, but that's not all.
It was agreed that St. Maarten would not have to budget compensation for financial shortfalls of previous years yet, provided an arrangement was made for the arrears to SZV and APS. Without such, the current deficit facing the country could be considerably larger than hoped.
Various government-owned companies were going to play a role in the still-to-be-justified income and it's far from clear to what extent they are complying at this point. If not, the imposing by the Netherlands of across-the-board drastic further cuts in expenditures can be expected, with all possible consequences.
It won't be easy, but the parties involved need to do their utmost to help overcome these last obstacles to restoring calm and order in local public finances. Only then can the focus fully turn to 2016.
