~Finance Minister Marinka Gumbs says reforms introduced in 2026 are already being used to prepare next year's budget months ahead of schedule.~
PHILIPSBURG:--- While Parliament has only just begun debating the 2026 National Budget, Minister of Finance Marinka Gumbs has already turned the government's attention to 2027, telling Members of Parliament that work on next year's budget is well underway in an effort to finally end years of chronic delays.
The announcement formed one of the key reform initiatives presented during Friday's budget debate. According to Gumbs, the Ministry of Finance has fundamentally changed the budget preparation process by introducing earlier planning, tighter accountability, and stronger coordination among ministries.
"The 2027 budget process began months earlier than in previous years," Gumbs told Parliament. "Ministries have been engaged well in advance, and the necessary structures are now in place to support the timely preparation and submission of future budgets."
The Minister acknowledged that the 2026 budget arrived later than required, describing the delay as part of a longstanding pattern that has affected successive governments. However, she said the structural reforms introduced this year are intended to ensure that late budgets become a thing of the past.
"I want to be clear. While this is not a new phenomenon, I intend that it will be the last time a national budget is presented this late under my leadership," Gumbs declared.
2027 Already Taking Shape
The government's budget presentation provided Parliament with its first look at the financial outlook for 2027.
The Ministry of Finance projects total revenue of Cg 670 million, an increase of Cg 23 million over the 2026 estimate of Cg 647 million.
At the same time, total expenditure is projected at Cg 662 million, or Cg 26 million more than the 2026 operating budget.
Despite the higher spending, the government still expects to post an operating surplus of Cg 8 million in 2027. Although lower than the projected Cg 11 million surplus for 2026, the figures suggest the government expects to maintain balanced budgets over the medium term.
No New Taxes—Yet
One of the more significant revelations in the presentation is that the 2027 projections do not include any new revenue-raising measures.
The presentation specifically states that the proposed tourist levy, estimated to generate approximately Cg 18 million annually, has not been included in the revenue forecast because the legislation has not yet completed the parliamentary approval process.
Instead, the Ministry of Finance expects revenue growth to come mainly from higher collections of wage tax and turnover tax (TOT), while maintaining the tax-to-GDP ratio at approximately 14.2 percent through 2029.
The government also anticipates that contributions under the TWO Country Package will begin declining during 2027 as the programme is expected to wind down after the first quarter, unless it is extended.
Four Years of Budget Surpluses
The financial outlook presented to Parliament projects positive operating balances throughout the entire budget period.
Government forecasts:
- 2026: Cg 11 million surplus.
- 2027: Cg 8 million surplus.
- 2028: Cg 15 million surplus.
- 2029: Cg 17 million surplus.
Revenue is projected to fluctuate between Cg 639 million and Cg 670 million, while annual expenditure is expected to remain between Cg 624 million and Cg 662 million over the four years.
Changing the Budget Culture
The Minister said the earlier start to the 2027 budget process forms part of a wider effort to transform the culture of public financial management.
The reforms include stronger internal financial controls, improved coordination among ministries, clearer accountability measures, and the continued implementation of policy-based budgeting, which links every allocation to measurable policy objectives rather than simply listing operational expenses.
The objective, according to Gumbs, is to create a disciplined budget cycle in which ministries begin planning months in advance, allowing Parliament sufficient time to scrutinize government spending before the start of each fiscal year.
Whether those reforms succeed will become evident in the coming months. If the Ministry of Finance submits the 2027 National Budget on time, it would mark one of the most significant improvements in St. Maarten's public financial management in many years and signal that the government is finally breaking with the cycle of delayed budgets that has repeatedly drawn criticism from Parliament, the Council of Advice, and the Committee for Financial Supervision (CFT).
