A scene during the marathon virtual budget debate which began on Monday and ended on Tuesday.
PHILIPSBURG--A lengthy debate amongst Members of Parliament (MPs) spanning more than eighteen hours over a two-day period ended on Tuesday afternoon with the legislators unanimously approving the 2020 budget as well as a joint amendment supported by all faction leaders.
The passing of the budget means that government will soon be able to release the funds related to the St. Maarten Stimulus and Relief Plan (SSRP) so that, amongst other things, businesses can receive much-needed payroll support to remunerate their workers and minimise layoffs and business closures in the country under the current COVID-19 health crisis.
The amendment that was passed underscores the importance MPs attached to having the 2020 budget implemented as soon as possible. The amendment calls for the budget to go into effect on the first day after the date of issue of the Announcement Sheet in the National Gazette in which it is placed and will date back to and including January 1, 2020.
“This amendment … aims to bring the National Ordinance into force as a matter of urgency so that the implementation of the measures from the St. Maarten Stimulus and Relief Plan can be implemented as soon as possible in order to deal with the economic and social impact of the COVID-19 pandemic,” the translated amendment reads.
The debate on the budget began on Monday with ministers making brief presentations about their respective ministries, following which MPs had a chance to pose questions, make comments and table suggestions. The Chair of Parliament wanted to finalise the discussions in one go and continued the meeting with ministers answering questions posed in the first round well into Tuesday morning.
The first round ended around 3:00am Tuesday and the chair decided to continue into the second round. With many MPs already tired, most did not ask any questions in the second round, while some said they had questions, but would either submit them in writing and accept a written response at a later date, or they would have their questions addressed later.
United Democrats (UD) MP Sarah Wescot-Williams said she did not understand the point of having a second round at that late hour, but said, “let’s rumble,” before outlining her concerns.
After all questions were asked, when it was close to 3:30am Tuesday, the meeting was adjourned and set to resume at 11:00am the same day. Due to technical difficulties, the meeting began just after noon.
During the course of the entire budget debate, many MPs underscored the importance of a more realistic budget being tabled and/or the necessary amendments being made eventually, as the passing of the 2020 budget was just a formality.
A first version of the budget came into existence in 2019 under the previous minister of finance, but was not submitted to parliament at that time. The new government made adjustments to the draft, but while awaiting the advice of the Council of Advice the world was plunged into an economic tailspin with COVID-19.
Following the start of the COVID-19 pandemic, the Council of Advice advised that government not send the pre-COVID-19 budget to parliament, as it was no longer realistic. While the effects of the coronavirus are nearly impossible to predict at present, the Council nevertheless advised government to proceed with the budget to parliament and to include an educated guess of the COVID-19 effects.
Following the Council’s advice, the budget was adjusted to include the effects of COVID-19 as stipulated in the Stimulus Plan. The needed revisions were made. In addition, the amended COVID-19 figures were added in a new column.
The section of the budget which reflects the numbers now includes the 2020 budget column pre-COVID-19 as well as a column for the presented budget with the COVID-19 effects. This also meant that the explanatory notes, which reflect the elucidation of the budget amount, needed to be updated.
In the budget, the income of government is expected to fall short of original estimates. The income is expected to drop this year by about NAf. 108.4 million, of which NAf. 67.5 million is projected for the second quarter. Government had originally projected an income of NAf. 455.7 million.
Income from civil services is expected to drop by 54.8 per cent; taxes by 21.5 per cent; permits and fines by 18.4 per cent; economic licences by 43.3 per cent and fees from permits and spatial planning by 51.8 per cent.
An initial gross estimate of expenditures indicated that large sums are needed to mitigate the effects of COVID-19, but also to keep public services operational and ensure public safety.
Of the estimated damage of NAf. 258.3 million projected in the SSRP, approximately NAf. 67 million is caused by the decline in revenue in the first three months in addition to the deficit of NAf. 31 million already included in the pre-COVID-19 budget. The remaining NAf. 186 million is needed to cover medical and social cost for three months.
