THE FALL OF THE SINT MAARTEN'S GOVERNMENT

THE FALL OF THE ST. MAARTEN GOVERNMENT

By: JJosepha News

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Willemstad, Curacao. As a represented Curacao Senior Chief News Correspondent covering the Dutch Caribbean, Caribbean, Americas and European region, this daily have on a number of occasions attempted to communicate with The Sint Maarten Legislature, but just like former Curacao prime minister, Ivar Asjes, Sint Maarten legislature refused to provide any response. Is it a super blood moon effect to ignore the media, and its simplest of questions? Or in the second, it seems to be a proven track record that those that choose not to respond to such simple questions seem to fall faster than a smoker’s ashes can blow away?
The reality is that the St Maarten government was at the brink of a parliamentary budgetary earthquake, especially given the news from the Board of Financial Supervision (CFT) of Curacao and Sint Maarten; just weeks ago, about the proposed budget and suspended capital expenditure until their "house" was put in order.

PART 1

IS THERE REALLY BUDGETARY MISMANAGEMENT IN SINT MAARTEN'S LEGISLATURE?

To many, this may seem like a quick fix for those without some parliamentary budgeting experience. Besides; (1.) The Kingdom of The Netherlands, (2.) The Oversight Committees, (3.) Ministry of Finance and (4.) Court Auditors, are all there to assist Parliament. But in the real world there is no Wizard of Oz to help the wayward spending behaviour when a legislature and those who head the legislative body jump down an Alice in Wonderland rabbit hole of increased debt and spending, with a planning safety net of increased taxes on its citizens and businesses. Usually with no power "de facto" to amend formal budgetary powers of a legislature, like that of India with the motion to cut one rupee from the proposed budget, the passage of which entails the fall of the government via a vote of "no confidence".

WHAT IS GOING IN SINT MAARTEN MAYBE THE FORESHADOW OF THE FUTURE OF CURACAO.

Many in Curacao, are possibly looking at the Sint Maarten scenario as a warning shot fired across the bow of the "SS Curacao's Future" by Mother Netherlands to the coalition government of Curacao, which has seen The Pueblo Soberano's Asjes administration adding half a billion guilders (equivalent to more than $280 Million dollars, USD) to the already "large double figured" heavyweight national debt to the country’s national GDP.
Some months ago, Age Bakker of CFT, issued a passive warning about the country’s economic position and the budget during Curacao's fourth prime minister’s reign. Thereafter, it was observed that there were supposedly increases in government revenue from increases in gas prices; which was the common way of increasing taxes. Can you think of other taxes that have been increased or implemented?

PART 2

FINANCIAL MANAGEMENT - BUDGETARY PLANNING FOR MACRO-ISLAND ECONOMIC STATES AND MEGA-ISLAND ECONOMIC STATES IN THE CARIBBEAN.

There are multiple differences between Curacao and Sint Maarten, but among those, is the sheer size of the population.

EXAMPLE OF FINANCIAL MANAGEMENT -

THE BIRTH OF NON-STRESS TAX METRICS FOR MEGA-ISLAND STATE ECONOMIES WITH LARGE POPULATIONS

For example, in a simple illustration, if Cuba was to tax; on their approximately 12 million resident to raise revenue of $200 million CUC per annum over the next four years before the one-party election of the CCP, then, assuming:

• A. 20% of the population is the non-working youth (2.4 million), and
• B. 10% of the population is retired (1.2 million),
• C. 70% or (8.4 million) of the population represents the able workforce.

Then assuming that each year everyone is able to work each year for a four year period and the unemployment percentage is a flat figure measured to be 10%. Therefore, (7.56 million) would be working and if each person is contributing $4.00/month = $0.13/day or $1.0/week; this equates to $48 per annum, which represents an Total Annual Tax Revenue of $362.88 million CUC. Now over the four year period this equates to approximately $1.452 billion CUC. And; according to a world’s trusted currency authority, 1.00 CUC=1 USD

THE REALITY OF FINANCIAL MANAGEMENT WITH MACRO ISLAND STATE ECONOMIES AND SMALL POPULATIONS

Now, given the same scenario of national statistics but different population demographics and size: Curacao’s approximately 164,000 residents; to raise revenue of $200 million USD per annum over the next four years before elections, then assuming 20% of the population is the non-working youth (32,800) and 10% of the population are retired (16,400), then 70% or (114,800) of the population represents the able working force. Assuming that everyone is able annually to work each year for a four year period and the unemployment percentage is a flat figure measured to be 10%; therefore 103,320 would be working and if each person is contributing $4.00/month = $0.13/day or $1.0/week, this equates to $48 per annum, which represents an Total Annual Tax Revenue of $4.96 million and now over the four year period this equates to approximately $19.84 million. The exchange rate of USD:Antillian Guilder = 1.79 Therefore this represents 35.51 million Antillian Guilders And according to the world's trusted currency authority, 1.00 CUC=1.79000 ANG Therefore, 35.51 million ANG = 19.84 million CUC

CONCLUSION IN COMPARING LARGE POPULATION TO SMALL POPULATION IN FINANCIAL MANAGEMENT FOR TAXING PURPOSES...

Now just comparing the total revenue raised over the four year period between Curacao to that of Cuba for the same amount per month represents only 1.4% of revenue generated for Curacao compared to Cuba. Such a comparison is hardly feasible in the real world and would put undue stress on the population from an increasing tax burden that’s unbearable in comparison, thus the comparison of Sint Maarten in wonderland jumping down the rabbit hole to recovery; alerted budgetary controls for a no confidence and hence the inevitable fall of the former government!

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