New 2011 St. Maarten Budget heavy on personnel costs

POSTED: 06/7/11 2:30 PM

Education, Justice and General Affairs take lion’s share of new budget

GREAT BAY – Minister of Finance Hiro Shigemoto has presented Parliament a new concept of the 2011 Budget and Multi-Annual Budget for 2012 to 2015 that is “balanced”, contains figures that are “conservative and realistic” and that has “sufficient to cover capital investments.”

Income

The total income budgeted for 2011 is roughly 421 million guilders. Roughly 75 % (404 million) of that consists of various taxes and 25% of other levies and fees including about 17 million guilders in grants through the Socio-Economic Initiative (SEI) and the Education Program. The government’s income (excluding grants) amounts to about 28% of the country’s Gross Domestic Product, which is estimated at about 1.4 billion guilders.

The government projects it will raise 65 percent of its tax income from wage/income tax, turnover tax and profit tax. The other 35 percent will come from other taxes and levies like concession fees and fees for, amongst others, business permits and work permits.

Operating expenses

The total operating expenses for 2011 is roughly 421 million guilders. Just over 26% of that amount is allocated to the Ministry of Education, Culture, Youth and Sports, 16% to the Ministry of Justice, 16% to the Ministry of General Affairs, 14% to the Ministry of Public Health and Labor Affairs, 9% to the Ministry of Finance, 8% to the Ministry of Tourism, Economic Affairs, Transportation and Telecommunications, 7% to the Ministry of Housing, Physical Planning, Environment and Infrastructure and Housing and 4% to the Parliament of St. Maarten.

Roughly 37% of government’s operating expenses cover the cost of personnel. The total formation plan requires that government have 2, 100 employees and the minister projects 80% (1, 680) will be in place by year’s end. The Ministry of Justice has 62% percent of its staff compliment – the smallest percentage of all seven ministries. Implementation of the ministry’s plan of approach will help to increase the figure.

Some 29% of the operating expenses are for goods and services, while 25% will go to subsidies and contributions to government institutions and 9% will go to other expenses like interest and study financing. The main part of the subsidies goes to school boards but there are also contributions to various institutions like the Prosecutor’s Office.

In some specifics the minister pointed out that the allocation for Parliament includes the cost of the General Accounting Bureau, the Ombudsman and the Socio-Economic Council (SER). The budget for the Ministry of General affairs includes accommodation (rent, water, electricity, maintenance, insurance) and the communication costs of all ministries. In future these costs will fall under the various ministries. The allocation for the Ministry of Finance includes interest expenses, depreciation expenses and “duurtetoeslag”.

The allocation for the Ministry of Justice includes the cost of the police force, prison, etc and the cost of the plans of approach to improve safety. The allocation for the Ministry of Education, Culture, Sports and Youth consists mainly of the cost of education, including public education, while the Ministry of Public Health, Social Development and Labor will spend a vast amount of their allocation on the medical expenses of all Government employees and their family and the medical cost of PP holders.

Capital investments

The total of loans (117 million guilders) to be attracted to finance the capital investments is within the present borrowing capacity. The total of capital investments planned for 2011 amounts to about 123 million guilders. Some 52 million guilders will be spent on new buildings, including the new Government Administration Building, SEI projects and part of the ring road.

National debt

The government projects that total debts at the end of 2011, including new loans will amount to 451 million or 32% of GDP. Loans include the portion from the debts of the now defunct Government of the Netherlands Antilles that have been allocated to St. Maarten (205 million guilders) and the existing loans St. Maarten already had.

Comparisons

The budget as presented Monday is 23.5 million less than the budget thaws approved in Parliament on December 23. The main differences are lower back service payments (14.7 million), lower personnel third parties (1.4 million), lower rent on buildings (1.8 million), lower depreciation (2.7 million), higher costs in the Ministry of Justice for the plans of approach and Common Court of Justice (6.2 million), higher cost PP-cardholders and less promotion American tourism (1.6 million).

Did you like this? Share it:
New 2011 St. Maarten Budget heavy on personnel costs by

Comments are closed.