Editorial: Deficit

POSTED: 12/11/13 7:00 PM

The 2014 budget is not there yet, but already there seems to be a need for an adjustment. The Cft projects that the 2013 budget will close with a 13 million guilders deficit, in spite of best efforts with a liabilities and vacancy-stop and other cost cutting measures.

Remarkably, the 2013 budget would meet the European Union standard of a 3 percent deficit ceiling almost to a t.

This does not mean that we should be happy with the deficit, because those deficits are not going away: they transfer to the next budget year.

From the notion by the Cft that revenue is lagging, we must conclude that there is still a lot of work to do in the field of tax compliance.

As things stand now, St. Maarten has to prepare for another meager budget year, though a truly balanced 2014 budget that gets a positive advice from the Cft will open the doors to cheap loans for investments in projects like the government administration building and – let’s not forget that one – the purchase of the Emilio Wilson Estate.

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