PHILIPSBURG--The "elasticity" of the 2012 budget will "remain limited and it also means that we have to make progress with our efforts to increase income and cut expenditures," said Finance Minister Hiro Shigemoto in his "Year Note" to Parliament, submitted mid-May.
Most ministries already have begun putting together a draft 2012 budget, "so we seem to have enough time to prepare a country budget 2012 that meets all criteria and that balances."
The new budget has to stay beneath the maximum amounts that apply according to the multi-annual estimate of NAf. 438 million. "The small, allowable increase will be consumed by the general indexes for wages and prices."
Government expects tension on the new budget, because of vacancies that will be filled during 2011 (some NAf. 15 million), termination of financing of critical functions by Dutch funding agency USONA (NAf. 3 million) and back-service effects if wages are indexed (some NAf. 10 million).
There is some incidental cost in 2011 that will not return in 2012. The effect of this non-recurring cost is about NAf. 30 million. "This means that our elasticity will remain limited again next year and it also means that we have to make progress with our efforts to increase income and cut expenditures," Shigemoto said.
"The draw up of budget 2011 has been a hard and sometimes bothersome process. This was partly due to the fact that the preparations had to start in the situation of being a part of the Netherlands Antilles, while the budget had to fit the new organisational country structure.
"Especially for the former land functions, this appeared to be tough. Now we have the budget 2011 finalised and our governmental organisation is nearly installed, so that our starting position is much better than last year's," he added.
For the advancement of the country, several factors have to take place, such as more familiarity with the new country's organisational structure, together with the associated cost, and better understanding of the actual task and responsibility of a new country, which was previously under-budgeted by the former Netherlands Antilles.
"Government needs to commence a core task analysis for its administration with our desired policies. The availability of a core task study will be helpful, since it is expected to give advice on the core task of government. Once there is an understanding of this study, team SEB can initiate the most effective and appropriate measures that lead to structurally balanced budgets."
A National Development Plan (NDP) and a governing programme (GP) are "critical" to execute effective, structural measures in line with such initiatives for future balanced budgets. "The NDP and GP are imperative at this moment to ensure the cost associated with these initiatives are known and taken up in the multi-annual balanced budgets."
Once the core task analysis, NDP and GP are in place, government will have to implement revenue-generating, cost-cutting, control and efficient measures based on its short-, medium- and long-term objectives, Shigemoto said. "Some measures may certainly not be popular. However, these measures would be necessary for the advancement of country St. Maarten."
Russell Brand Mervyn King Oscars Niclas Alexandersson Mark Bright Robert Schumann
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