PHILIPSBURG--Finance Minister Marinka Gumbs presented a new draft 2025 national budget to Parliament’s Central Committee on Monday, outlining projected revenues of Cg 586 million and expenditures of Cg 577 million, resulting in a forecasted surplus of Cg 9 million.
The budget includes updated figures that reflect all government and parliamentary amendments approved in January, along with a comparative analysis of actual performance in the first quarter of the year. According to Gumbs, the budget remains realistic and aligned with the country’s current financial outlook.
Gumbs told Parliament that government income in the first quarter of 2025 was stronger than expected, while spending came in lower than planned. “This comparison is important to demonstrate that the 2025 budget continues to align well with the country’s financial performance to date,” she said. She explained that the Ministry of Finance compared actual numbers from January to March with the quarterly breakdown of the 2025 budget, dividing the annual budget into four equal parts to estimate what each quarter should look like.
She said that unlike the first quarter of 2024, when revenues fell short by about 20 million guilders, the first quarter of 2025 exceeded expectations. “In fact, Q1 2025 shows that revenues are actually exceeding expectations. This is a positive signal and reinforces that the 2025 budget remains on solid footing,” Gumbs stated. The government collected Cg 15 million more than expected in Q1, with the bulk of this increase coming from taxes – 6 million more from wage taxes and another 6 million from turnover taxes. Compared to the same period last year, total income rose by Cg 9 million . “This is a very positive sign,” she said, “especially when looking back at early 2024. It was already clear that revenue for the year was too high and budget cuts had to be made… That’s not the case today.”
On the spending side, the government spent 19 million less than planned during the first three months. Gumbs explained that this variance was expected. “Despite this variance, the Ministry considers the results generally aligned with the budget, for several key reasons,” she said. Some salary payments, including retroactive pay from earlier adjustments, had not yet been processed. Personnel costs were down by 13 million guilders mainly because new hires were delayed due to the late approval of the budget. Additionally, some non-essential projects were postponed so the government could focus on core responsibilities. Compared to the same quarter in 2024, expenses were down by 5 million guilders. Gumbs added that the Ministry will have a clearer picture by the end of July when updated figures are available, and those numbers will guide adjustments in the upcoming 2025 budget amendment.
During her presentation, Gumbs explained that the new draft of the 2025 budget was necessary due to procedural and legal challenges that delayed ratification of the version approved in January. She said both government and Parliament made changes to the budget that could not be fully incorporated in its original form. “Now, I know that many of you, like myself, had hoped that the 2025 budget – which was unanimously approved by Parliament back in January – would already be enacted and published. Unfortunately, that was not the case,” she said. “Due to challenges with the amendments and modifications made to the budget – both from the side of government and Parliament – we were unable to move forward with ratification.”
She said government had officially informed Parliament of its objection to ratifying the earlier version of the budget. “This version includes all the amendments and modifications that were previously approved by Parliament in January 2025, now fully and properly incorporated,” Gumbs stated. She said the decision to return with a new draft was unusual but necessary. “Is it standard practice for government to submit a budget that already includes Parliament’s amendments? No, it is not. But this was not a standard situation. This approach was chosen as a practical and responsible solution – to ensure that the budget as approved in January could finally be enacted.”
Gumbs acknowledged that the delay caused frustration and emphasised the need for a clearer process to handle amendments in the future. “I would prefer to never repeat the experience we went through after the approval of the budget in January 2025,” she said. “When legal and procedural challenges prevent the proper incorporation of amendments, we all lose valuable time and resources.” She announced her intention to address this issue in the SOAB audit plan for 2025, after earlier attempts to include it in the TWO budget reform project were unsuccessful. “It is critical to find alignment and clarity on how we handle this going forward,” she added.
The Finance Minister also reviewed the broader financial picture for the year, noting that total revenue is made up of tax income, permits, fees, concessions and other sources. She said tax revenue is projected at Cg 453 million, with the remainder coming from permits, fees, and other income. Spending is focused on key categories such as personnel, goods and services, social security, depreciation, subsidies, and interest payments. Gumbs said personnel costs for 2025 are expected to reach Cg 253 million, including salary indexation and vacation allowance increases. Goods and services are projected at Cg 138 million, while social security stands at Cg 36 million. Depreciation is budgeted at Cg 15 million, subsidies at Cg 109 million, and interest and bank charges at Cg 26 million.
Gumbs noted that some areas will require closer attention in the years ahead. Healthcare spending is expected to rise due to an ageing population and a recurring annual deficit of about Cg 50 million in the healthcare fund. Interest payments are also increasing due to capital loans and refinancing agreements, although recent refinancing of COVID-related loans at a lower interest rate of 2.9 percent will help soften the impact. She emphasized that these multi-year projections highlight the need for ongoing monitoring, reform, and responsible resource management.
The Minister reiterated that while this is technically a new version of the budget, it remains based on previously approved commitments. “While this is, by definition, a new draft, it remains rooted in the choices and commitments already made,” she said.
The budget meeting will continue at 11:00am today, Tuesday, with the various ministers providing answers to the questions posed.
