POND ISLAND–The country’s second deficit budget is expected to be in Parliament by mid-November, some two-and-half months past the September 1 deadline outlined in the Constitution. Finance Minister Perry Geerlings told the press on Wednesday the delay with submission, as stated in the past, is connected to his efforts and that of his ministry to present in the draft 2019 budget “a reflection of the financial situation that is as accurate as possible.”
The draft budget, for which not figure has yet been made available, should be in the hands of the Council of Ministers by mid-September for review and approval. The financial document will then head to the Council of Advice and the Committee for Financial Supervision CFT for their remarks.
As the draft budget will contain a deficit, Geerlings must send it along with the CFT advice to the Kingdom Council of Minister for review and for approval to deviate from the Temporary Kingdom Law on Financial Supervision for Curaçao and St. Maarten.
The law requires both countries-within-the-Dutch-Kingdom to present balanced budgets. It also provides for the possibility of deviation with the permission of the Dutch Government. Similar approval was sought and received from the 2018 budget that was the first to be severely affected by the economic shortfalls and overall devastation of Hurricane Irma a year ago.
A letter will soon be sent by Geerlings to Parliament and other stakeholders in the budget process outlining the delay and proposed timeline for delivery.
United St. Maarten Party Member of Parliament Rolando Brison took umbrage with non-submission of such a letter to Parliament prior to the September 1. Brison said in a press statement on Tuesday, Geerlings “needs to respect the Constitution,” because such a constitutional violation gives the impression of the minister has “little regard for the role of parliament.”
The draft budget is not the only budget-related task the Ministry of Finance is tackling. Geerlings is expected in Parliament next week to table the first amendment to the 2018 budget required to clear the path for the first tranche of liquidity support from the Dutch government post-Irma. A second amendment, also related to liquidity support, is in the offing.
Geerlings hopes that second amendment will also target changes to the capital expenditures chapter of the 2018 budget. He is working with fellow ministers on putting together projects still executable under that chapter in the remaining months of this year. Among those projects are the long-pending modernization of the tax office, tackling the level of tax compliance, creating a better working environment for tax office workers and the upgrade of Raoul Illidge Sports Complex in Cay Hill.
Source: The Daily Herald https://www.thedailyherald.sx/islands/80307-second-deficit-budget-expected-in-mid-nov
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