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Minister of Finance and Prime Minister sends letter to Parliament addressing 2025 Budget delay.

marinkagumbs02062024PHILIPSBURG: --- Minister of Finance Marinka Gumbs told members of the media on Wednesday at the Council of Ministers press briefing that on Tuesday March 4th 2025, a letter signed by the Prime Minister Dr. Luc Mercelina and herself as Minister of Finance was dispatched to the Parliament of St. Maarten.

Gumbs said the letter sent to Parliament on Tuesday also had the support of the Council of Ministers. In this letter, the finance minister said the technical issues and incorporation of amendments had caused delays in finalizing the eindtekst.

The Minister further explained that the Parliament was informed of all technical issues related to the amendments.

She said the 2025 budget has two main issues, mainly the seven amendments approved by the Parliament of St. Maarten.

1. Some amendments were proposed at the general ledger level, while the 2025 budget is

structured at the economic category level. This misalignment means that certain amendments do not directly align with the budget presentation at the economic category level, which is the approved structure for Parliamentary approval.

In 2024, the budget was presented at a more detailed level; however, in 2025, it was adjusted and presented at the economic category level in accordance with Article 6 of the Comptabiliteits landsverordening, which states that Parliament approves the budget per economic category. This adjustment was based on collaboration with TWO and the landspakket in improving the budgetary process of Sint Maarten.

Nevertheless, the Comptabiliteits landsverordening, particularly Articles 2, 6, and 43, supports the position that technical classification differences do not equate to noncompliance,

provided that the amendment adheres to the approved financial limits and intended budgetary framework.

2. Cascading/Ripple Effects of Amendments – Several amendments introduce changes that trigger adjustments to subtotals, totals, and other related budget components. In some instances, an amendment might instruct a single line-item adjustment. Still, of course, this single line-item adjustment will subsequently adjust the sub-totals and totals stated in the budget numbers book. However, in some instances the issue stems from the fact that the adjustments of the subtotals and totals were not explicitly stated in the amendment note.

It is also important to clarify that in previous years, amendment notes did not always explicitly include all ripple effects either. Nonetheless, due to the extent and volume of amendments this year, these omissions have caused an issue in finalizing the eindtekst.

This highlights the need for a more structured approach to future budget amendments to ensure all necessary adjustments are clearly outlined and accounted for in the amendment process.

Gumbs further stated that it is important to note that each amendment, both those introduced by the Government and those of the Members of Parliament, contains “technical issues,” which are now referred to as technical issues; Gumbs also made clear that not all legal minds view them as such.

Enhancing the Budget Amendment Process

 In explaining the hold-up with the finalization of budget 2025. The Minister said to prevent similar issues from occurring in the future, the Government proposes collaborating with

Parliament will develop standardized templates for amendment notes and amendments. These templates will help ensure that all necessary components—including financial and legal considerations—are adequately addressed, reducing discrepancies and improving efficiency.

Additionally, the Government suggests initiating a dialogue with relevant stakeholders to determine whether, for future amendments, the totals affected by the ripple effect must be explicitly stated or whether a general reference to the ripple effect would be sufficient. The Ministry of Finance will coordinate amendment notes, ensuring that financial and legal matters are thoroughly reviewed before submission. Based on lessons learned from the current process, these measures will help improve accuracy, transparency, and efficiency in the budget amendment procedure.

Gumbs said she is looking forward to receiving a response to the letter provided to parliament, as it will be key in determining the way forward in finalizing and enacting the 2025 budget. Ensuring a timely resolution will allow the government to move forward with the necessary financial processes effectively and implement the unanimously approved 2025 budget.

The Minister of Finance said the government and parliament must work together to resolve this matter and enact this important budget for Sint Maarten. This is not about political maneuvering—their sole objective is to determine the best way to finalize the budget enactment.

The Minister said that the budget submitted to Parliament is not the issue; the challenge lies in incorporating the approved amendments. Had there been no amendments, the budget as submitted would have already been published. Therefore, the collective focus must be on ensuring that these amendments are processed correctly in line with parliament's intentions so the budget can move forward without further delay.

As the Minister of Finance, I remain committed to ensuring transparent, accountable, and efficient financial management.

 

Click here for the Letter sent to the Parliament of Sint Maarten on Tuesday.


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