Readers may have been surprised to learn that the Central Bank projects a 2.1-million-guilder surplus for St. Maarten (see Monday paper). After all, the public had been told 2015 would end up
with a deficit that needs to be compensated for next year.
What must be realised is that the joint monetary authority’s forecast is based on estimates regarding income and cost, while the Finance Ministry and in particular the Committee for Financial Supervision CFT adjust their figures according to what actually was earned and spent during the preceding quarters.
Consequently, anybody who wants to claim the announced budget cuts are not necessary should think again. For example, when the Central Bank talks about more tax proceeds it concerns how much can be levied, not what amount ultimately is collected.
So, while the improvement by NAf. 10.3 million mentioned looks good on paper, the final result in terms of added revenue is yet to be seen. The expected economic growth of 0.3 per cent for this year doesn’t exactly give rise to great optimism in this regard either.
Still, the news is welcome because in any case it indicates a slight recovery of public finances. Especially in the current situation every little bit helps.
Nevertheless, prudence remains the order of the day for the country to climb out of the deep hole in which Government has put it. It is important to continue planning for the worst and hope for the best.
