This is absolutely not true. First of all it can only be determined if there is a deficit on the budget by compiling a financial statement. A perceived deficit can be discussed however, even for this one needs to consider other factors.
Yes, the plan to raise Naf.21 million in income tax from Real Estate (owners of condominiums who rent to non-residents) seems like it won't be realized, and that is why there was a plan B which was discussed. Furthermore we need to look at the income realized thus far for 2012 which for the first quarter of the year (January up to and including April 2012) shows a marked increase in revenue for Government as compared to budget 2012 estimated income for the first quarter (more than 10 million guilders) as well as compared to 2011, income generated over the same quarter was 20 million guilders more.
Secondly the budget 2012 for the first quarter was underspent by some Naf. 13 million. And in addition, when I left office the Finance Department was busy with the various Ministries preparing the budget amendment for the years 2011 and 2012.
I would also like to make the public aware that new expenditures can be made in order to ensure that there is no budget deficit at the end or even that there is a deficit at the end of the book year (so when finance close off the year for bookings).
And since the finances of government are dynamic in nature the figures are constantly changing and that if one wants a true image of the finances one needs to have access to the first quarterly report for 2012 and the transition document for the Ministry of Finance prepared for the new Minister of Finance.
Both documents were prepared and presented (quarterly report to the CFT and the Council of Ministers, Parliament and the General Audit Chamber) and the transition document for the new Council of Ministers so that all would be up to speed with the country's income/expenditures.
When informing the public Members of Parliament have first of all, the responsibility to inform the public truthfully and entirely and not leave out bits and pieces just to try to discredit persons or create a negative image about the previous government of which his party was a part of.
The budget 2012 was discussed at length with all coalition partners of the former government and before going forward to the Parliamentary handling at that time, the CFT had already mentioned their concern as it pertained to the additional income which was budgeted and now to hear the MP refer to it as the Minister of Finance's crazy plans when the budget 2012 enjoyed a comfortable support of all UP/DP/Illidge coalition MP's. The people of this country are not stupid and can read through the lines that it's all politics
I left an approved budget 2012 behind which of course needs continued careful monitoring over the remainder of 2012 as we don't know how things will be economically although no further growth was anticipated. The monitoring of the budget 2012 has been up to and including the day under tight supervision by our own Finance Department including the Secretary General. And yes there are issues which need to be resolved via budget amendments but some of these were known before the budget 2012 was approved and were discussed within not only the Council of Ministers but also within the three meetings held with the coalition and faction leaders in February 2012, and there were no objections to the budget 2012.
Account Balances
The balance on the current accounts of the government totaled Naf. 38 million up to March 2012. In the same period last year the amount on the current account totaled Naf. 20 million. The current account increased by 90% compared to the same period last year.
On 31/12/10 the government of Sint Maarten bank reserves totaled Naf. 127 million. However, Naf. 65 million has been transferred to APS, as these were funds that belonged to them. This means that the actual reserve on 31/12/10 was Naf. 62 million.
As of 31/3/12 the reserves build at several banks on Sint Maarten totaled Naf. 65 million.
Bank balances for current accounts per May 16, 2012 were:
WIB NAF 7,081,562.48 - payments for today NAF 2,733,430.21 = NAF 4,348,132.27
WIB US 5,747,145.84 - payments for today US 48,284.84 = US 5,698,861.00
RBC Royal Bank NAF 364,531.87 payments for today NAF 10,105,10 = NAF 354,426.77
RBC Royal Bank US 306,458.17
Issues like the finalization of the Plan of Approach of the Ministry of Justice which was not fully incorporated in the budget 2012, as well as other shortcomings which either came along during the first quarter of this year or were known previously.
Not to mention now that the Government has changed, the allowance which is stipulated by law to pay to the four ex Ministers (20 months) has to be provided for in the budget amendment 2012, and budgets 2013 and part of 2014. The pension premium which has to be paid on behalf of all Ministers which comes out of Government's Coffers has to be also budgeted in 2012. Some of the risks (risicos) we can ascertain from the new Government trying to stop projects which most probably will end up in law suits will have to be taken up in the risk table of the Government to be submitted with the budget amendment. Trying to portray that this former Minister of Finance, allowed a deficit of Naf. 37million to be run up is besides not true or based on factual information, and is also a slap in the faces of the employees of the Ministry of Finance who have worked tirelessly alongside my person to try to ensure that the budget 2012 remains balanced. That is why there are plans A, B and in some cases even C.
Please be honest with the people of our country and do the honourable thing by presenting the true picture.
Former Minister of Finance Hon. Hiro Shigemoto
