PHILIPSBURG:--- The Government of Sint Maarten is heading into a state of financial paralysis for the first half of 2026, a situation that threatens to stall critical infrastructure projects, freeze justice payouts, and leave subsidies in uncertainty.
According to documents obtained from the Ministry of Finance, the Budget Amendment 2025 will not reach Parliament until February 9, 2026, and the 2026 Budget is not scheduled for submission until May 18, 2026. This timeline confirms a catastrophic delay that effectively locks the government’s hands for nearly six months. The Minister of Finance sent an undated letter to the Parliament of St. Maarten informing them of the current situation.
The public needs to understand the gravity of this situation: The Government is legally blocked from executing new policies.
Constitutional Violations and Illegal Payments?
This delay exposes a much darker reality regarding government spending. It has been revealed that thousands of guilders were paid out for Carnival subsidies without an approved budget, based solely on the expectation that the Budget Amendment 2025 would cover it.
This raises a critical constitutional question: If the budget was not approved, on what legal authority were these funds released?
Article 100 of the Constitution and the Comptability Ordinance are clear: Parliament must authorize spending. Spending public funds without this authorization is a direct violation of our laws. If Carnival subsidies were paid illegally, the public must now ask:
What other payments were made in 2025 without a budget?
Have millions been spent on travel, consultants, or other hidden costs without the stamp of Parliament?
Are we operating in a system where the Government spends first and asks Parliament for permission later?
Legal Ramifications and Minister Liability
The legal ramifications of these actions are severe. If the Budget Amendment 2025 is not passed, or if the CFT rejects these retroactive covers, these payments remain illegal.
Personal Liability: Ministers who authorized payments without budgetary backing could be held personally liable for the funds.
Negative Audit Opinions: The General Audit Chamber and SOAB will likely flag these unauthorized expenditures, leading to negative audit results that damage Sint Maarten’s credit rating and its relationship with the Netherlands.
Precedent of Impunity: It sets a dangerous precedent where the Budget is treated as a suggestion rather than a law.
The "No" List: What Stops in January?
Because the budget will not be ratified, the government is restricted to the "1/12th rule," meaning they can only spend on ongoing operational commitments. The impact is immediate and severe:
No New Hires: The civil service is frozen. Essential vacancies cannot be filled.
No Police and Justice Payouts: While Minister of Justice Natalie Tackling has promised support, the question must be asked: How will these be paid? Without a ratified budget, there is no legal basis to pay the promised bonuses, gratifications, or police payouts.
No New Contracts: The new garbage contracts recently announced by the Minister of VROMI cannot be awarded. The tender process put out by Patrice cannot be finalized until the budget is ratified.
No GEBE Relief: Any planned financial relief for citizens struggling with utility bills is dead in the water until at least June.
No Civil Servant Perks: There will be no jubilees or bonuses for civil servants.
Revenue Trap Taxes Collected But Cannot Be Spent.
Perhaps the most alarming aspect of this delay is that even if the government succeeds in generating new revenue, it cannot touch it.
Revenue-generating measures intended for 2026, including the Tourist Tax and Airbnb Tax, are rendered useless for immediate relief. Even if the Netherlands transfers funds or tax compliance increases, that money remains in the accounts, frozen. It cannot be allocated to projects, salaries, or services until the Parliament approves the budget, a process now delayed until nearly mid-year.
Trust Fund and TWO Projects at Risk
The delay has international consequences. New projects under the Temporary Work Organization (TWO) and the Trust Fund that were slated to begin in early 2026 will face immediate delays.
With these programs scheduled to conclude in 2027 (with a possible extension to 2028), losing six months to bureaucratic gridlock endangers the completion of these vital developments. If the local government cannot put up its share or sign the necessary counter contracts, the projects stall.
A Breakdown of Democratic Oversight
Beyond the financial freeze, this delay represents a failure of democratic oversight. Because the entire cycle is late and compressed:
Parliament is flying blind: it cannot assess the country's actual financial position.
No Accountability: MPs cannot hold Ministers accountable for deviations between planned and actual spending because the "actuals" for 2025 won't be formalized until 2026.
Reactive, Not Proactive: The government is forced to respond reactively, putting out fires rather than executing a vision.
As indicated by Minister Gumbs, the government has "no authority over the management of Parliament," and the ratification process alone can take weeks after submission. This means the people of Sint Maarten should not expect a fully functional government capable of new initiatives until the second half of 2026.
The question remains: Why was the cycle allowed to slip this far, and who will answer to the police officers, contractors, and civil servants who are now asked to wait another six months?
Click here to read the undated letter from the Minister of Finance to Parliament.
Carnival subsidy paid without an approved budget.