PHILIPSBURG:--- Although the 2014 budget was presented and passed by Parliament last week, SHTA, the largest business representative on the island, is of the opinion that there are still unanswered questions and uncertainty with regard to the budget cuts. It seems as if this budget was formed in a vacuum without timely consultation of the stakeholders. "Although we understand and support the necessity for budget cuts in order to come to a well balanced budget, one of the questions still looming is 'Why weren't the cuts made across the board?" said SHTA.
For any country, the budget forms the basis that outlines the functioning of its Government apparatus and it is a critical tool for managing operations throughout the year. If such a budget is formed without the timely consultation of all stakeholders, the end result is more than likely to be flawed. This has, as an example, led to a situation whereby the increase in employee health insurance premium by 2.1% it seems was done without any consultation from the business sector and the unions. With stakeholder input, consultation and involvement, the budgeting process could have led to a broader vision on the steps required to balance this budget.
Not all gloom and doom, as the freezing of Government salaries after a decade, can be seen as a step in the right direction and should be commended as an austerity measure, which will hopefully be the beginning of a review/trimming-down of the government apparatus in order to increase its productivity. Curtailing government expenditures is always an effective measure once it is done in light of proper consultation. Perhaps in moving forward, it would be worth adopting a participatory budget structure i.e. A democratic process in which stakeholders in the community directly decide how to spend part of a public budget. This is a different way to manage public money and to engage people in Government as it enables taxpayers to work with Government to make the budget decisions that affect their lives – For more information please see their website: www.participatorybudgeting.org.
The St. Maarten Hospitality & Trade Association is dedicated to bringing quality to all aspects of life on St. Maarten by promoting sustainable economic development for its members in cooperation with the social partners and the creation of a fair marketplace. For more information, please contact the SHTA office: 542-0108, e-mail This email address is being protected from spambots. You need JavaScript enabled to view it. or visit our website www.shta.com.