Draft budget 2008 shows
25-million cost increase
PHILIPSBURG--The increased cost on the 2008 draft budget amounts to approximately NAf. 25 million, which is primarily associated with government expanding its responsibilities in areas that need addressing.
These increased expenditures are being offset by the income received from funding through the Social Economic Initiative (SEI) and Dutch funding agency USONA.
It was agreed in the November 2, 2006, final statement that the contributions through the SEI and USONA for 2008 would form an integral part of the income and expenditures of the budget of the Island Territory.
Government also will be taking up the responsibility for tasks that are primarily those of the Central Government, “but due to the lack of attention by the Central Government and St. Maarten being on its way to becoming a country, we have now decided to address these types of issues by creating the possibility of subsidies to institutions,” Finance Commissioner Roy Marlin said on Friday when presenting information of the 2008 draft budget to the media.
Cost for personnel, Marlin said, has shown a gradual increase of three per cent from year to year. The personnel expenses of the general administration of government in 2008 are some 22 per cent of the NAf. 315-million total income, excluding cost associated with medical attention to family members of civil servants.
Marlin said furthermore that funding had to be set aside in several segments of the 2008 draft budget to continue with the constitutional change process. Increased cost in connection with third party assistance to the tune of NAf. 3.2 million is primarily reflected in those respective government departments specifically tied into the preparation for country status.
The “normal expenditures” of the 2008 budget compared to previous years reflect an increase of some 19 per cent, Marlin continued. This increase is primarily due to factors such as the new Government Building, scheduled to be put into use in 2008, cost associated with the constitutional change process, projects financed by USONA and through the SEI that were not taken up in previous budgets, and cost associated with the actual preparation of the USONA and SEI projects and programmes.
The cost of government buildings also increased, the Commissioner said. “These are costs associated with the payments to the Foundation Government Buildings which is charged with the construction and management of the new Fire and Ambulance Station, the Fish Market, the sports fields and the reconstruction of the public schools.”
Maintenance of roads
Under the capital budget segment, a NAf. 3.6 million increase in cost from NAf. 6.9 million to NAf. 10.5 million has been calculated primarily for maintenance of public roads.
An amount of NAf. 14 million has been made available under the SEI for solving urgent traffic bottlenecks. Half of this amount will be funded by the Island Territory.
Tourism, Economic Affairs
The increase in cost in this sector, Marlin stated, has to do primarily with the improvements of Philipsburg to the tune of NAf. 4.3 million funded through the concession fee paid by the harbour, an increase of cost associated with the Dutch Government’s contribution to the SEI of NAf. 2.9 million and an additional NAf. 3 million associated with expansion of marketing activities in the United States of America, Latin America, the Caribbean, Canada and Europe.
The strong euro currency has prompted a larger increase in the European budget and an additional NAf. 1 million has been made available under the SEI programme for extra marketing efforts, Marlin said.
Education
The NAf. 23.4 million increase in cost for education is partly due to the increased contribution in connection with the cooperation programmes and the SEI of NAf. 12.6 million and the “Quick Wins” programme of NAf. 2.1 million, Marlin said.
“We also see a general cost increase of NAf. 8.7 million. This increase is primarily due to the increase in personnel cost and is funded directly from the budget of the Island Territory.”
In addition, the cost associated with school bus transportation is budgeted at NAf. 3.5 million.
Culture and recreation
Compared to 2007, NAf. 1.1 million has been budgeted primarily associated with sports, maintenance of sporting facilities and the maintenance of green spaces.
Social needs
An amount of NAf. 2.5 million has been reserved for the “jeugd en jongeren” project. “The need to have funding available for programmes such as Ujima Foundation, I Can Foundation and the MPO foundation is becoming more evident and is being taken into consideration. The sum of NAf. 2.5 million is just the beginning,” Marlin stated.
Public Health
In this sector, Marlin said a general increase of NAf. 15.1 million could be seen. “This is partly due to the inclusion of the SEI funding, and increase of expenditures through the local budget itself.”
Cost associated with garbage collection will be increased by NAf. 2 million, which will enable government to further professionalise the garbage collection system, he said.
Furthermore, an amount of NAf. 4.5 million is budgeted from the Hurricane Lenny reconstruction fund for investments in garbage processing, which should be the first step toward a structural solution.
NAf. 500,000 has been budgeted for start-up cost in connection with the transfer of the shares and tasks of the ADC laboratory to SLS.
Public Housing
The budgeted subsidy to St. Maarten Housing Development Foundation has been increased by NAf. 550,000 for persons residing in the Belvedere homes and the Red Cross homes for the elderly. The benefit of this will be reflected in the percentage of the income, which is now set at 30 per cent of the maximum income, that may be allotted for disposable rent.
