GREAT BAY--College financieel toezicht Curaçao en St. Maarten, Cft has confirmed what Minister of Finance Marinka Gumbs told Parliament in June: that St. Maarten recorded a provisional surplus of Cg. 39 million in the first quarter of 2026, a result she said was Cg. 36 million more favorable than projected in the draft 2026 budget. The Cft says this places the country in compliance, for the time being, with the central budget norm and the legally required deficit-compensation obligation.
In its response to St. Maarten’s first execution report for 2026, the Cft, described the stronger tax revenues, clearer identification of financial risks and improved classification of government income as positive developments.
Government collected XCG 171 million in revenues during the first quarter, XCG 8 million more than during the same period in 2025. Tax revenues increased from XCG 127 million to XCG 157 million, supported by compliance efforts and the reclassification of income that had previously been recorded under other revenue categories.
The Cft noted that the administrative correction makes it difficult to determine how much of the increase resulted from economic activity and how much came from improved compliance. Nevertheless, the higher collections contributed to a first-quarter result that was slightly better than the XCG 38 million surplus recorded during the same period in 2025.
Total expenditures reached XCG 133 million, compared with XCG 125 million in the first quarter of 2025. The increase was mainly linked to higher personnel costs resulting from the filling of vacancies, health insurance expenses and overtime payments.
While the overall result was positive, the Cft identified several areas requiring continued attention. The implementation of the country’s investment agenda remains behind schedule, with approximately XCG 1 million of the XCG 278 million in planned capital investments realized during the first quarter.
The Cft urged government to adopt a realistic multiyear investment schedule, accelerate the execution of projects and provide clearer reporting on which investments have already been committed and which funds may still be reassigned.
The financial supervisor also cautioned that St. Maarten’s available liquidity is expected to decline during 2026. It called for stronger liquidity planning, better-supported financial projections and continued action to reduce outstanding payment obligations.
According to the report, payment arrears to SZV and APS stood at approximately XCG 128 million at the end of March. The Cft also continued to identify financial risks involving GEBE, TelEm and the social funds.
The Cft further emphasized the importance of approving the national budget on time. Because the 2026 budget had not yet been adopted, the first-quarter performance had to be compared with the approved 2025 budget, limiting the value of the assessment against government’s current financial plans.
Despite these concerns, the XCG 39 million preliminary surplus and stronger revenue performance provide St. Maarten with a positive starting position for 2026. Maintaining that position will depend on careful expenditure management, improved liquidity, timely execution of public investments and continued progress in strengthening financial reporting.
