Majority approves
2008 draft budget
PHILIPSBURG--The 2008 draft budget was accepted by a majority of the Island Council on Wednesday. All six Democratic Party (DP) Island Council members voted in favour of the budget, while the National Alliance (NA) political faction voted against.
When motivating his vote, NA leader William Marlin said that whether the Executive Council liked it or not, the budget was business as usual. Government had danced around questions and some facts it had omitted, he said. “Government cannot seriously say the budget will secure country status for St. Maarten as of next year,” Marlin said.
Finance Commissioner Roy Marlin, who presented the draft budget, said anyone who voted against the budget would have voted against St. Maarten and the projects that had been lined up for 2008.
The budget has a projected income and expenses balance of NAf. 315 million which includes funding from taxes, the Social Economic Initiative (SEI) and USONA. During the Central Committee meeting, the respective sector directors outlined the policy for 2008.
The Executive Council also submitted the 2009-2013 multi-annual projections for country St. Maarten. The projections still have some uncertainties, such as the debt portion of St. Maarten from January 1, 2006, until when the island attains country status. The division of assets and liabilities also has to be determined.
In the draft budget 2008, sectors show a normal increase of 22 per cent, Marlin said. The increase has to do with general expenditures. Areas of education and tourism also showed substantial increase due to prioritising by government.
Government will make amendments during 2008 to make funding available to create the transitional Justice Department, he said. “The Netherlands has been pressuring on this and wants to set this as a condition with regard to acquiring country status.”
Furthermore, Marlin said the road fund still would not be established in 2008, while the road tax would not be increased. However, SEI will make NAf. 14 million available to solve urgent traffic bottlenecks.
NAf. 4.3 million from the harbour concession fee will be used for the further beautification of Philipsburg. Under SEI, NAf. 3 million more than in 2007 will be made available for marketing of tourism.
The St. Maarten Tourism Authority, to create public-private initiative, should be established in the first quarter of 2008, the commissioner said.
An increase of NAf. 23. 4 million in expenditures in the area of education will be partially financed by SEI and “Quick Wins.” In the education sector there will also be a NAf. 8.7 million general cost increase that has to do with personnel cost (new salary scale for teachers) and refurbishing of schools that will be directly funded by the Island Government.
Commissioner Marlin said that the implementation of a school bus fee had been debated in the Executive Council, but it had been decided not to introduce it.
St. Maarten Medical Center will receive a subsidy increase of NAf. 1.1 million to realise expansion plans. This will be a yearly recurring subsidy, he said.
Another NAf. 500,000 has been set aside for the start-up cost of St. Maarten Laboratory Services.
Marlin said he wanted to realise a project in 2008 to facilitate an integrated Inspectorate of Taxes and Tax Office. He said he had had meetings with Minister of Finance Ersilia de Lannooy on the upgrading of the Tax Office and the merger of the Island and Federal Receivers’ Offices. “This can be achieved in the first quarter of 2008 involving all players at Central Government and Island Territory level,” he said.
The largest source of income will be wage tax, estimated at NAf. 116 million. Government also has requested the Minister of Finance to increase the Turnover Tax by one per cent, which should generate an additional NAf. 27 to 30 million.
