PHILIPSBURG:--- During the second draft budget debate for 2025, Member of Parliament Ardwell Irion posed several critical questions regarding the government’s financial planning, the handling of Social and Health Insurance (SZV) payments, and the implementation of the Dividend Withholding Tax (DWT). Minister of Finance Marinka Gumbs addressed these concerns in detail, providing clarifications and defending the government’s approach to fiscal management.
SZV Payments and Surplus Allocation
MP Irion questioned why the government, despite reporting a 50-million-guilder surplus in the first quarter, could not allocate funds to address the shortfall in payments to SZV. He highlighted that SZV requires 6 million guilders per month, yet the government had been paying only 5 million guilders, leading to a growing debt.
Minister Gumbs clarified the situation, explaining the seasonal nature of government revenue. “Q1 and Q4 every year show strong results,” she stated. “However, these results are typically used to offset the decline in collections that we experience during Q2 and Q3. Therefore, it would not be accurate to state that the surplus of Q1 can be used to cover payments to SZV.”
She further noted that discussions with SZV had resulted in an agreement to increase monthly payments to 6 million guilders, effective as of May 2025, thereby addressing the shortfall moving forward.
The 95 Million Guilder Agreement with SZV
MP Irion also referenced a previous agreement for a 95 million guilder settlement with SZV, which he claimed had been endorsed by SOAB and CFT. He criticized the current administration for discarding this agreement and starting the process over, which he argued had increased the debt to 135 million guilders.
Minister Gumbs refuted this claim, stating, “I am uncertain as to what ‘deal’ the Honorable MP is referring to. I would like to emphasize that we do not make deals with the public funds of the people of Sint Maarten. The figure of 95 million guilders stated in the document as an amount to be agreed upon with SZV was not supported by any substantiating documentation.”
She added that neither SOAB nor CFT had formally approved the 95-million-guilder figure, which is why a comprehensive review was requested. “Approving or signing off on such a significant financial commitment without proper justification or a clear understanding of how the amount was determined would have been irresponsible on my part as Minister of Finance,” she said.
Capital Expenditure and Investment Planning
MP Irion raised concerns about the lack of updates in the budget regarding capital expenditure (CapEx) and investment projects. He specifically asked about the timeline for funds and the inclusion of new infrastructure investments in the 2025 budget.
Minister Gumbs acknowledged the challenges in securing CapEx funding for 2025, given the timing of the budget process. “As previously stated, given that we are already midway through 2025, the likelihood of receiving capital expenditure funding for this year is very limited,” she explained. “The Netherlands would have needed to include such funding in their own budget planning in advance. As such, it is most likely that these investments will need to be rolled over and incorporated into the 2026 budget.”
Dividend Withholding Tax (DWT) Revenue Projections
MP Irion questioned the government’s estimate of 10 million guilders in revenue from the DWT, arguing that the figure seemed unrealistic given the lack of data on dividend distributions in Sint Maarten.
Minister Gumbs defended the estimate, explaining that it was based on a comparison with Bonaire, which generates approximately USD 7 million annually from a similar tax. “Taking this into account, and exercising caution and prudence, we estimated a projected revenue of NAf 10 million annually for Sint Maarten,” she said.
However, she acknowledged the need for more concrete data and committed to refining the projections as more information becomes available.
Readiness of the Tax Administration
MP Irion also raised concerns about the readiness of the Tax Administration to implement and enforce the DWT. He questioned whether the current IT systems and staffing levels were sufficient to handle the additional workload.
Minister Gumbs admitted that the Tax Administration is under significant pressure due to limited staffing and resources. However, she assured Parliament that preparations for the DWT’s implementation are underway, including the development of necessary forms and systems. “Certain staff members within the Tax Administration have already been informed, as they are actively assisting with these preparatory steps,” she said.
Political Games and Moving Forward
In a pointed exchange, MP Irion accused the government of playing political games with the budget and tax reform measures. He criticized the lack of consultation and transparency, particularly regarding the DWT.
Minister Gumbs responded by emphasizing her commitment to transparency and collaboration. “It is my responsibility as Minister of Finance to put forward solutions that will help our country move forward—solutions that were already agreed to but not acted upon,” she said. “Let us move away from politics for politics’ sake, and instead work toward actions that benefit all of the people of Sint Maarten, not just a few.”
Conclusion
The exchange between MP Ardwell Irion and Minister Marinka Gumbs underscored the complexities of managing Sint Maarten’s finances. While MP Irion raised valid concerns about errors and oversights in the draft budget, Minister Gumbs provided detailed responses, defending the government’s approach and emphasizing the need for bold but responsible decisions to ensure fiscal sustainability.
As the debate continues, the focus remains on finding solutions that balance economic growth, compliance, and fairness, while addressing the immediate needs of the people of Sint Maarten.