Finance Minister Marinka Gumbs.
PHILIPSBURG--Finance Minister Marinka Gumbs presented the draft 2027 budget projecting Cg670 million in revenues against Cg662 million in expenditures, resulting in a projected Cg8 million surplus. The Minister acknowledged that government faces limited resources, competing priorities and several areas requiring improvement.
Gumbs presented the draft budget during a Central Committee meeting of Parliament on Monday, highlighting that it was submitted in September, several months before the end of the year. She cautioned, however, that the early submission would only become a true milestone if the budget is approved, passed and published before the December 15 deadline. “I will hold off on the applause until the budget has been formally approved, passed, and published before the December 15 deadline,” Gumbs said.
She said the draft budget builds on the work and lessons of the 2026 budget cycle, with the Government seeking to strengthen budgetary discipline, sound financial management, transparency and accountability.
Gumbs described a budget as more than a collection of figures, saying it sets out the government’s plans, the resources needed to achieve them and how those activities will be financed. It also gives Parliament an important role in overseeing public spending and holding government accountable.
For 2027, government’s priorities include economic development, a strong and resilient society, sustainability and good governance, alongside improved service delivery, digitalisation and social support. These objectives are aligned with the National Development Vision 2020-2030 and the Governing Programme 2025-2028.
The draft budget projects total revenues of Cg670 million, an increase of Cg23 million compared with the 2026 budget. Gumbs attributed the increase to continued economic growth and corresponding growth in tax revenues.
Taxes remain government’s main source of income, projected at Cg497 million, or approximately three-quarters of total revenue. Other revenue is projected at Cg84 million, fees and concessions at Cg65 million, and licences and permits at Cg25 million.
Tax revenue is expected to increase by Cg19 million, driven primarily by higher collections from wage tax, turnover tax, profit tax, room tax and transfer tax.
Revenue from licences and permits is projected to increase by Cg6 million, mainly because of an expected increase in business and residence permit applications. Fees and concessions are expected to rise by Cg2 million, largely due to higher bank licence fees.
Other revenue is projected to decline by Cg4 million, primarily because of lower expected project-related funding and grants. Importantly, the 2027 budget does not include any new revenue-generating measures.
Gumbs said the government deliberately excluded revenues from measures that still require legislative approval and implementation. These include a tourist tax, revisions to various government fees, measures to strengthen tax assessment and collection compliance, and the exploration of a gaming tax framework.
She said including uncertain revenues could overstate the government’s financial position.
Personnel costs make up the largest expenditure category at Cg288 million. Gumbs said the increase is mainly connected to filling long-standing vacancies, particularly at management level, where government continues to face capacity constraints.
She said several critical areas lack sufficient staffing to effectively carry out government responsibilities and provide services to the public.
The government’s organisational structures and function books for most ministries have not been comprehensively reviewed since 2010, while St. Maarten’s population increased by approximately 26 percent between 2011 and 2022.
Gumbs said government therefore needs to address the gap between the growing demand for public services and its organisational capacity.
Goods and services are projected at Cg181 million. Project-related expenditure is expected to decline as temporary initiatives and externally funded projects are phased out.
However, Gumbs noted that the government will still need to spend money to maintain and institutionalise reforms, systems and services developed through those projects.
The remaining expenditure includes Cg106 million for subsidies, Cg36 million for social provisions, Cg31 million for interest expenses, Cg16 million for depreciation, and Cg4 million for scholarships and allowances.
Moderate economic growth
The budget was prepared against a backdrop of moderate economic growth, external vulnerabilities and continued social pressures. The International Monetary Fund projects real GDP growth of approximately 2.7 percent in 2027, while the Central Bank of Curaçao and St. Maarten projects growth of approximately 2.2 percent.
Growth is expected to be driven mainly by private consumption, supported by stay-over tourism and continued expansion of cruise tourism. Over the medium term, public investment is expected to increase again through major infrastructure projects.
Inflation is projected at approximately 2.1 percent in 2027 and is expected to gradually decline to around 1.9 percent by 2030. Average unemployment between 2027 and 2030 is forecast at approximately 6.4 percent.
Government debt is estimated at approximately 32 percent of GDP based on IMF projections and approximately 33 percent based on Central Bank projections.
Gumbs said sustainable economic growth remains a key policy objective, with economic diversification, increased productivity, innovation, improvements to the business climate and sustainable employment remaining central to the Government’s agenda.
Surplus based on existing revenues
Gumbs stressed that the projected Cg8 million surplus does not depend on new revenue measures that have not yet been approved. “This surplus is based on revenues that can reasonably be expected, rather than revenues we merely hope to collect,” she said.
The government plans to continue working on measures to broaden the revenue base and strengthen the country’s fiscal position, but these will only be incorporated into future budget updates and revenue estimates once there is sufficient certainty about their implementation and expected yields.
In her closing remarks, Gumbs acknowledged that some ministers may have wanted additional funding for their portfolios. She said the demand for resources exceeds what is available across government, meaning difficult choices have to be made.
The final allocations in the draft budget reflect collective decisions by the Council of Ministers after weighing the various priorities and available resources.
Gumbs also called for ministries to look beyond requests for additional spending and identify ways to improve revenue collection, increase efficiency and reduce unnecessary expenditure within their areas of responsibility.
She said savings achieved through stronger controls and additional revenue generated through improved compliance could create fiscal space for priorities that are important to the people of St Maarten.
The CFT identifies areas for improvement.
Gumbs also addressed the Article 11 advice received from the Committee for Financial Supervision (CFT) concerning the 2027 budget.
She acknowledged that the advice identifies several areas where improvements are needed, including liquidity and outstanding obligations, financial risks connected to healthcare and government-owned entities, the substantiation and consistency of certain budget figures, and the planning and execution of capital investments.
At the same time, she noted that CFT recognised progress made in the budget process, including the approximately Cg8 million surplus on the ordinary service and the significantly earlier preparation of the 2027 budget.
Gumbs said submitting the budget on time is only one part of the process and that the quality, credibility and execution of the budget are equally important.
She said the government views the CFT advice as part of the process of strengthening public finances and intends to address the identified challenges.
Gumbs concluded by describing the 2027 budget as one based on prudence, realism and responsibility rather than extraordinary promises.
The budget seeks to balance current needs with responsibilities to future generations while maintaining fiscal discipline, good governance, economic resilience and sustainable development.
She identified external economic uncertainties, demographic pressures, climate-related risks and the continued strengthening of some government-owned entities as challenges that still need to be managed.
At the same time, the government’s overall outlook remains positive, based on projected balanced budgets, manageable debt levels, continued economic growth and investments intended to support the country’s long-term development.
Gumbs said she hopes the budget process can be completed before the start of the new budgetary year, establishing a standard in which budgets are submitted, debated, approved and in place before each new budget year begins. She said doing so would provide greater financial certainty and help prevent delays in government operations, projects and initiatives.
