Unbiased look at the Sint Maarten Elections
Today's news that the Committee for Financial Supervision CFT has given St. Maarten until January 31 to establish the 2015 budget is most welcome. The original December 15 deadline had clearly gotten out of reach, in part due to the recent political developments and issues with the screening of candidate ministers.
Affording the incoming UP-led coalition more time to present amendments bringing the draft in line with CFT's advice and the Kingdom Consensus Law on Financial Supervision shows the necessary respect for the Gumbs Cabinet that – after all – will have to work with it. Meeting the requirements won't be easy either, as the total amount is still to be reduced from 445 to 426 million guilders unless revenue-increasing measures are taken.
Moreover, there are lingering doubts about fiscal discipline, as this year's budget threatens to be surpassed due to shortfalls in earnings and "overrunning" personnel cost. In the end a budget is just figures on paper and it's the execution that counts.
The debts to the pension fund APS and Social and Health Insurance SZV also continue to be a concern, although the latter at least was prevented from growing even further by having employees instead of government pay to cover their family members effective 2014. Nevertheless, a structural solution for the outstanding arrears is needed sooner rather than later.
The question whether the public administration is too big for the local tourism-economy, while a valid one, cannot rightfully be answered if many in society don't contribute their fair share. Improved tax compliance therefore remains essential in determining a realistic scenario for the future.
Publisher's note:
Due to technical issues we were unable to print the Miami Herald international edition Friday and Saturday. We HOPE to be able to do so again effective Monday, December 8, and apologise for any inconvenience.
