That the country’s deficit for the first half of 2018 was 36 million Antillean guilders less than anticipated has been welcomed by the Committee for Financial Supervision CFT (see related story). Income turned out to be higher at NAf. 189.5 million rather than NAf. 170 million and expenditures were lower with NAf. 233.5 million instead of NAf. 250.3 million.
However, people should not count themselves rich now, as there is still a “hole in the budget” of NAf. 44 million from January up to and including June. Thankfully, tax proceeds were up from earlier predictions in July and August too, indicating that this positive trend may continue for the rest of the year, with total revenues expected to finish NAf. 28 million above the original estimate.
The remaining shortfall is being covered with liquidity support totalling NAf. 166.1 million from the Netherlands to which Parliament recently gave its unanimous approval. The zero-interest 30-year loan with a five-year grace period followed one for a smaller amount granted by the Dutch government for 2017 due to Hurricane Irma’s devastating impact on the local economy and earnings during the final three months of that year.
Although borrowing, especially with these favourable conditions, is completely justified under the present circumstances, that money will have to be repaid at some point. This “mortgaging of future generations,” as some have called it, should therefore be limited as much as possible.
Particularly the last two former Finance Ministers Richard Gibson and Michael Ferrier deserve credit for their efforts to control cost and increase collected revenues. Current Minister Perry Geerlings is obviously carrying on in that sense and will have to keep doing so for quite some time while the dominant hospitality industry slowly but surely recovers.
Nevertheless, also financially the way St. Maarten bounced back from such a catastrophic natural disaster has been admirable to say the least. SXM Strong indeed.
