PHILIPSBURG:--- The Board of Financial Supervision (Cft) observes substantial risks to Sint Maarten's public finance at several state-owned enterprises. Furthermore, the executive organization for social security funds, SZV, is going through difficult times. If no measures are taken, the reserves will be depleted, with major consequences for public finances. In addition to the delayed 2026 budget, Sint Maarten is currently working on a timely 2027 budget. It is important that this budget adequately addresses the country's risks.
Sint Maarten does not yet have an active participation policy in place, which has caused issues within government entities. Telecom company TELEM, energy and water supplier GEBE, and postal services PSS, among others, face limited financial possibilities and are under great pressure. It is important that solutions are put in place and that governance issues are addressed. A complete and adequately functioning Supervisory Board and Management Board are prerequisites for effectively implementing change.
Simultaneously, the government of Sint Maarten must address the acute risks to public finances at the entities through a clear strategy, which entails entering into agreements with the distressed entities on financial sustainability or market solutions. Looking ahead, the Cft recommends implementing an effective participation policy as soon as possible and executing it with the required capacity and expertise to ensure these issues do not arise again.
Focus on a timely budget
Aside from the aforementioned issue, Sint Maarten has been facing considerable delays in the budgetary process for years. This year, the budget was adopted far too late. At the earliest, the 2026 budget will be adopted halfway through the year, which limits the ability to make policy and address risks. In practice, plans and investments are postponed time and again.
The Kingdom Council of Ministers has requested Sint Maarten to draw up an improvement plan for the budgetary process. The government actively reacted to this request. Sint Maarten began preparing the 2027 budget on time and shared an extensive plan with the Cft. Also, early on in the process, the government came to an agreement regarding the expenditure framework. At the same time, the CFT now observes hitches in the process because not all ministries submit information on time. The CFT urges the Council of Ministers as a whole to take its responsibility. Only with a proper contribution from all involved, the 2027 budget can be adopted before the start of the new budgetary year, in accordance with the objective set.
Affordability of healthcare and pensions is at stake
An acute risk for the coming years that must be addressed in the 2027 budget is the deficits in the healthcare funds. Annually, the healthcare funds, managed by the Executive Organization Social and Health Insurances (SZV), incur losses of approximately XCG 35 million. Until now, these deficits – which now amount to approximately XCG 500 million – have been absorbed through reserves of other funds, mainly the pension fund AOV. Within a few years, these reserves will be depleted, which puts the affordability of healthcare and pensions for the citizens of Sint Maarten under great pressure.
The CFT has repeatedly pointed out the severity of the situation. There is no more time to lose. The measures that Sint Maarten has identified must be implemented. According to Sint Maarten, the implementation of a general health insurance (GHI) will lead to a reduction of the annual deficits. It is essential that the corresponding legislation is implemented as of the most recent target date of January 1, 2027.
Aside from the GHI, other measures must be implemented to achieve income and/or cost reductions. Sint Maarten is aiming at the introduction of a tourist tax as of January 1, 2027, and work is in progress to reform the tax system and the tax authorities, which should lead to improved tax collection and compliance. This provides the country with the means to cover social security deficits and fund other priority expenses. In its current state, the country's liquidity is too limited, and the risks are too high, given the geopolitical situation. Now is the time to act.



PHILIPSBURG:--- The most troubling words uttered during Friday’s parliamentary debate may not have come from those arguing for or against the motion of no confidence. They may have come from the admission that followed.
PHILIPSBURG — A parliamentary meeting concluded on a conciliatory note after a motion expressing dissatisfaction was formally withdrawn before it could be debated or voted upon.
PHILIPSBURG:--- In one of the most emotional moments of Thursday's marathon parliamentary session, Chairlady of Parliament Sarah Wescot-Williams delivered a candid and deeply personal explanation of why she believed Parliament had no alternative but to support the motion of no confidence against Minister of Public Health, Social Development, and Labor Richinel Brug.




