Finance Budget 2021 Presentation

1. 2021
Draft Budget
Sint Maarten

2. INTRODUCTION
• Approved budget amendment 2020 forms the basis;
• Revenue: realized figures of 2020 adjusted with the IMF
projections
• Stimulus Program budgeted for 9 months
• Additional expenses due to COVID-19 pandemic
• Adjusted legislation

3. Addressed Concerns of the
Council of Advice
• Strengthen Financial Supervision.
• Pending Financial Statements.
• Incorporating the 12.5% reduction of the
employment packages.
• Will the new Parliament Building result in a
savings for housing?

4. Synopsis Draft Budget 2021
Approved Budget
2020
Draft Budget
2021
Expenses 570,979,161 613,117,700
Income 337,088,078 371,342,781
(-)Deficit/(+)
Surplus (233,891,083) (241,774,919)

5. Income Government
Income Category Realization 2020
Budget
2021
Amounts in mln NAF
Taxes 288.1 307.5
Permits 11.2 11.1
Fees and Concession 29.7 36.4
Other Income 25.7 16.2
Total 354.7 371.2

6. Multi Annual Revenue Projections
Based on IMF projections
Amounts in mln NAF
Year 2021 2022 2023 2024 2025 2026
GDP 1871 2179 2410 2622 2792 2917
Revenues 371 411 447 484 522 544

7. Expenses Government
Realization(presumptive)
2020
Budget
2020
Budget
2021
Amounts in mln NAF
41 Personnel costs 185 199 190
40 Provision unforeseen costs 6
42 Depreciation costs 8 11 9
43 Material costs, goods and services 130 133 158
43 Consultancy Fees 2 5 7
44 Subsidies and grants 104 180 202
45 Interest 13 13 12
47 Social Security 30 26 26
48 Scholarships and allowances 3 4 4
Total 475 570 613

8. Expenses per Ministry
Realization (presumptive)
2020
Budget
2020
Budget
2021
Amounts in mln NAF
Parliament and higher councils 16 21 23
Ministry of General Affairs 67 79 76
Ministry of Finance 77 139 166
Ministry of Justice 78 81 82
Ministry of OCJS 114 115 118
Ministry of VSA 77 76 86
Ministry of TEATT 16 22 22
Ministry of VROMI 29 37 40
Total 475 570 613

9. COVID-19 Related Costs
Bedragen in NAf *1M 2021 Accounts
Direct relief
Payroll Support 53,000,000 4022 44301 00013 Subsidy of 60% of the payroll
Subsidy Fixed Cost 40,500,000 4022 44301 00013 Subsidy of 30% of the fixed
costs
Subsidy SMMC 10.000.000 4022 44301 00013 Subsidy for SMMC for loss in
structural revenue
Income Support 4,880,000 4100 43489 00013 Income support for Sole
Proprietors/Vendors etc.
Unemployment Support 8,630,000 7210 43489 00013 Income support for the
unemployed due to Covid-19
Food Voucher 750,000 7260 43489 00013
Disaster Fund 2,700,000 30 43499 00013
Additional Support CPS (e.g. Airport) 1,414,320 7250 43000 00013
Annual Contribution EHAS system
Port Health
15,000 7250 43403 00013
PPE’s (Personal Protective Equipment) 500,000 7250 43419 00013
Quarantine Facility and testing
material
2,550,000 7250 43489 00013
Vaccination Program 3,000,000 7110 43489 00013
Totaal Cumulatief 127,939,320

10. CAPEX Per SNA Code
10
SNA Code Description Amount
AN111 Dwellings 350,000.00
AN1121 Non-residential buildings 18,131,000.00
AN1122 Other Structures 3,145,000.00
AN1123 Land Improvements 7,300,000.00
AN1131 Transport equipment 3,351,700.00
AN1132 ICT equipment 10,775,000.00
AN1139 Other Equipment 3,339,160.00
AN1171 Research and development 10,000,000.00
AN11731 Computer Software 26,533,900.00
AN1222 Other work-in-progress 400,000.00
Loans 14,125,337.00
Totaal 97,451,097.00

11. Loans
11
Beginning Balance Loans 2021 792,322,800.00
To cover COVID related expenses 127,259,320
To cover Structural Expenses 114,515,599
Loan for Capital Expenditures 55,562,986
Total Loan needed for 2021 297,337,905.00
Principle repayments for 2021 (8,790,516.09)
Ending Balance Loans 2021 1,080,870,188.91

12. 12
Ministry of Finance
• Public Financial Management
• Online Payments (Government Online Portal)
• Human Capacity Building
• Mortgage Guarantee Fund

13. Fiscal Developments
13
Internationally:
• Shift from direct to indirect taxation;
• Tax competition;
• Compliance with international standards (Base erosion and
profit shifting project (BEPS), tax transparency etc.).
Local challenges:
• Enforcement (understaffing of the Tax Department);
• Improvement of tax morale;
• Improvement of public finances.

14. 14
Fiscal Developments (cont’d)
Integral review of the tax system:
• Broadening the tax base;
• Measures against substantial reduction of tax expenditures
and contributions;
• Limit administrative interference/ discretionary powers of
both civil servants and directors with regards to deductions
and tax holidays.

15. Current Status
15
• Approved plan of Approach Transformation Tax
Administration
• Approved Plan of Approach Research Financial Work
Processes St. Maarten
• Draft Plan of Approach Research Budget Process St.
Maarten to be decided on next week in CoM.

16. Recruitment
16
• Concern controller position filled
• Ads placed in March 2021 for 10 functions
o Secretary General
o Medewerker Heffing Z&P
o Head Inspection
o Inspector of Taxes
o Hoofd medwerker Aanslagregeling
o Applicatie Beheerder
o Secretaresse
o Hoofdmedwerker Financieel Beleid
o Diensthoofd Comptabilitiet

17. 17
THANK
YOU