SXMElections.com

PHILIPSBURG--Finance Minister Martin Hassink again has presented what he calls "a skeleton budget" to Parliament. The draft 2015 budget, now under discussion in the Central Committee of Parliament, stands at NAf. 445 million, some NAf. 19 million off the amount projected by the Committee for Financial Supervision CFT.

Hassink told Parliament Thursday morning that CFT wanted government to "compensate" the previous years' accumulated budget deficits. This is not possible, as there is "no room" in the draft budget "to cut on the short term."

Government has proposed to CFT to compensate for the deficit with surpluses in the value of government-owned companies or to compensate with a multi-annual plan.

The growth of the budget by three per cent from NAf. 430 million last year can be credited to the country's economic growth, execution of tax project/clearing up tax administration backlog, and "swift execution" of tax administration reorganisation, ministries becoming responsible for their revenues (excluding collection) and contributions from government-owned companies, including SXM Princess Juliana International Airport, utilities company GEBE (water and electricity), St. Maarten Telephone Group of Companies TelEm, St. Maarten Harbour Group of Companies, Bureau Telecommunication and Post (BTP), Central Bank of Curaçao and St. Maarten, and others.

The "major part" of the operating expenses are "fixed and do not give much room for savings," Hassink said about CFT's call for trimming the budget to NAf. 426 million. To address government cost he has suggested, as he did in the last budget debate, the start of a cost-awareness programme within government, making ministries more responsible for their budgets and encouraging monthly management reporting.

Personnel expenditure continues to be a concern to the minister and for government in general. Although, personnel cost is below formation plans, the expenses have become "unaffordable." An increase in General Pension Fund APS premium "may lead" to an increase of up to NAf. 8 million.

To tackle the high personnel expenses, Hassink said there is need for special attention for medical cost and the APS premiums. Personnel and medical expenses for 2015 are tagged at NAf. 186.4 million.

Government's goal is to increase the country's budget from its 2014 level of NAf. 430 million to some NAf. 550 million in 2018 and "structurally increase efficiency" by a focus on economic development, improved functioning of the tax administration, amending and simplifying the tax laws, intensifying and broadening the cost savings project IVUV and personnel training. These approaches should result in a budget with surpluses, reduction/elimination of payment arrears, and compensation of previous years' deficits.

The social funds SZV/OV and FZOG are "still not balanced" and form "a risk" for the budget. The Social Insurance Fund SZV made a proposal to government last year to balance the fund. Execution of this proposal is "imperative." Measures to balance the funds are "required to come to an agreement" with SZV about the outstanding debt. NAf. 5 million is included in the draft budget to start offsetting that debt.

Budget amounts

The lion's share of the budget, as in previous years, goes to the Ministry of Education, Culture, Youth and Sports, headed by Minister Rita Bourne-Gumbs. That amount stands at NAf. 122.2 million, an increase of NAf. 6.3 million over last year's budget.

The second highest amount is devoted to the Ministry of General Affairs, headed by Prime Minister Marcel Gumbs. That ministry has a budget of NAf. 77.8 million, an increase of NAf. 3.5 million from the previous year.

The Justice Minister has NAf. 66.2 million for its operations, Ministry of Public Health, Social Development and Labour NAf. 57.5 million, Finance Ministry NAf. 42.1 million, Ministry of Public Housing, Spatial Planning, Environment and Infrastructure VROMI NAf. 34.2 million and the Ministry of Tourism, Economic Affairs, Transport and Telecommunications (TEATT) NAf. 28 million.

The budgeted total for Parliament and the high councils of state (Advisory Council, Social Economic Council and Ombudsman) stands at NAf. 16.6 million, a decrease of NAf. 533,620 from last year. This is the only segment in the budget to see a decrease in allotment.

The Finance Ministry has the highest operating income of NAf. 364.8 million followed by TEATT with NAf. 56.7 and Public Health with NAf. 10.4 million. The lowest operating income is from the Justice Ministry with NAf. 3 million.

Total capital investment in the draft budget is NAf. 111.03 million with VROMI accounting for the largest amount NAf. 33.9 million. The total investments are down from 2014 when the amount stood at NAf. 204.6 million.

Parliament continues its deliberations on the draft budget today, Friday.