PHILIPSBURG--Parliament meets in a plenary session today, Monday, to continue the process of approving the draft 2012 budget. The budget has completed the rounds in the Central Committee and now requires the final stamp of approval from Members of Parliament (MPs), who will begin their debate in Parliament House at 10:00am.
The approval process is not expected to be quick or straightforward, despite the deliberations in the Central Committee and the fact that there is no approved budget as yet for the year. Government and Parliament are functioning according to the budget figures as laid out in the 2011 approved budget.
MPs representing the United People's (UP) party/Democratic Party (DP) coalition as well the opposition National Alliance (NA) and independent member Frans Richardson already have cited their issues with the draft budget, ranging from insufficient funds for youth organisations to government's plans to collect owed inheritance tax from locals and rental tax from non-resident condo owners.
The DP, NA and Richardson are also expected to table several motions seeking amendments to the draft budget.
The total operating expenses for 2012 are budgeted at NAf. 432.5 million, an increase of NAf. 11.6 million or 2.8 per cent, compared to 2011. As required by law, the total operating income and expenses are balanced; the budget has no deficit and no surplus.
Capital expenditures include completing the new Government Building and other infrastructural projects, including the ring road.
The total NAf. 65.6 million in capital expenditures will be financed in part by government's available cash (NAf. 23.8 million) and bonds to be issued (NAf. 37.3 million).
National Alliance (NA) MP Louie Laveist said Sunday that he and fellow NA members would be attending the meeting. "We have a job to do," he said.
NA had requested a Parliament meeting to have the ministers outline their policies and how their plans fit into the total budget compiled by Finance Minister Hiro Shigemoto. That meeting was called on Thursday, but had to be postponed indefinitely due to procedural issues with the setup of the agenda.
The Committee for Financial Supervision CFT also has expressed its concern about the soundness of the income estimate in the draft budget, particularly government's plan to collect some NAf. 48 million in back rental taxes owed by non-resident condo owners.
Calling it "an important revenue-increasing measure for 2012," CFT stated that while it welcomed this type of initiative to increase income, it also foresaw risks regarding the practicability of such a measure.
Shigemoto had told Parliament the "income tax" figure was based on the number of non-resident condo owners, the average rental income over the high and low seasons and the percentage of tax, among other items, based on a survey conducted in 2011.
Based on the calculation, the ministry said it anticipated NAf. 9.7 million in income tax yearly. Going back five years, this implies that a maximum of NAf. 48.5 million is owed. In the budget, "a conservative amount" of NAf. 21 million is taken into account.
The plenary session will be broadcast live on St. Maarten Cable TV Channel 20 and Pearl Radio 98.1FM. The audio will be carried via
www.pearlfmradio.com .
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