CURACAO BUDGET IN THE NETHERLANDS POWER

CURACAO BUDGET IN THE NETHERLANDS POWER

By: JJosepha News

Twitter.com/JJosephaNews

Willemstad Curacao. On March 27th 2019, Curacao Prime Minister Eugene Rhuggenaath and his cabinet government; officially sent a letter to The Prime Minister of the Netherlands; Mark Rutte; to ask  Netherlands to apply the National Financial Supervision Act; (Rijkswet financieel toezicht in dutch) (Rft) Article 25.

WHAT WAS REQUESTED

The Netherlands Financial Supervision Evaluation Committee; CFT; had requested the Curacao Prime Minister and its government to balance Curacao budget with 127 Million Guilders.

WHAT IS CFT?

According to their site: "The Curacao and Sint Maarten Board of financial supervision; (Cft); has the role to monitor and advise". 
The tasks of the Board are directed towards the adoption and execution of:
(1.) The budgets that are balanced within the limitations as agreed upon 
(2.) The control of the total loans.

According to the Cft website; "In order to ensure that the financial supervision occurs in an optimal manner, the Board has to have insight in the budgetary cycle and the financial management of the countries. 
The Board evaluates whether the adopted budget is in agreement with the norms as stated in The consensus -Rijkswet financieel toezicht Curacao and Sint Maarten and provides an advice if necessary. 
The Board may provide solicited and unsolicited advice on the draft budget."

IS CFT ASKING FOR TOO MUCH?

After Cft requested the government to balance the budget, the Curacao Prime minister and its government did not came up with the 127 Million guilders, but instead with 121 million because it was pronounced; unrealistic of Cft to request such an amount.

PRIME MINISTER RHUGGENAATH'S LETTER
In prime minister Rhuggenaath's letter, he painted a panorama of Curacao's socio-economic situation, so drastically effected by the consequences of the Venezuelan crisis drifting over into Curacao.

He laid out Curacao's socio-economic reality and explained that this was mainly caused by external factors and those had  a direct effect on the island's government finances.

For those reasons prime minister Eugene Rhuggenaath relied on the Rft Article 25 first paragraph; so that notwithstanding the efforts of the Cabinet, account may be taken of deficits on the regular service that are expected for the years 2019 and 2020.

It was requested that deficits 2017 and 2018 budget realization including (170 Million guilders) can be compensated in the period of 2021 to 2025, as well as the deficits expected in 2019 and 2020.

BORROWING MONEY IN ECONOMIC DECAY?
Article 25 of the Rft is supposed to give Curacao time to grow and progress. 

The Prime Minister states that in order to stimulate and grow Curacao's economy, it is also necessary, to borrow at least an extra 60 Million guilders annually for the next three years borrowing for 'high impact' investments in sustainable projects with a structural effect and in projects that reduce the social backlog.

MARK RUTTE 1st PRIME MINISTER OF CURACAO AND EUGENE RHUGGENAATH DEPUTY ASSISTANT 1st PRIME MINISTER OF CURACAO?
The prime minister expressed that he wishes to consult The Prime Minister of the Netherlands; Mark Rutte, in the short term, about the possibility to finance the necessary reforms for the strategy on economic growth.

LOOKING AT HISTORY
In 2012 The Netherlands Kingdom Council of Ministers and CFT, warned that Curacao was heading to a so called "National Bankruptcy". Which was opposed by the then Curacao government. 
Mr. Eric Daalder; on behalf of the National Council of Ministers, also indicated a dark future for Curacao in 2012, where it was estimated that the budget deficit for 2012 was to grow to 300 Million guilders in 2013 and up to 420 Million in 2014 and 2015.

HOW CURACAO REMAINED ABOVE WATER
The 2013 assassinated former Member of Parliament and former leader of Pueblo Soberano; Helmin Wiels, started to direct and tackle some areas together with The Schotte government to keep Curacao above waters and prevent "bankruptcy".

One of the measurements that were implemented in 2012/2013, was the drastic decision to increase disability age from 60 to 65 years.

CFT ADVICE
On Sunday; March 31st 2019, Cft advised the Council of Ministers of the Kingdom of the Netherlands to give Curacao an instruction to balance the expenditure and income in the national budget for several years.

WAS THE CURACAO GOVERNMENT VISION OVER ESTIMATED?
It is up to The Council of Ministers of the Kingdom; (RMR), which may meet again on the 17th of April 2019, to make a decision about Curacao. Before any definite instruction is given, the Curacao government will be given the opportunity to explain and present its vision. 

In a letter to The Chairman of The Staten van Curacao's Parliament; Mr. William Millerson, Cft repeated; that it has been saying for quite some time, that:
1.) The income and expenditure of Curacao are not in balance and 
2.) The financial management of Curacao is not in order. 

THE FACTS OF THE FINANCIAL MANAGEMENT OF CURACAO IN REVISION...
The 2017 financial year closed with a deficit of 116.8 Million guilders and the provisional deficit in 2018 amounted to 52.7 Million guilders.

CFT INDICATED CURACAO'S FINANCIAL PLANNING WAS TOO OVER OPTIMISTIC.
Since 2016 Cft were concerned about Curacao's financial situation! CFT pointed out:
1.) "Too over optimistic revenue estimates", 
2.) Deficiencies in financial management; and, 
3.) A lack of budget discipline.
As a result of these; the expenditure does not remain within the budgetary scope. The 2019 budget has a risk of a deficit of around 100 Million guilders.

Even though measurements, that the Curacao Government wants to be implemented by the 1st of July, the legal standard of a comprehensive normal service will not be met for the third consecutive year.

WHERE IS THE TRUE LEADERSHIP OF CURACAO? SO FAR THE TRIAD PAR-MAN-PIN HAVE GIVEN POOR RESULTS ACCORDING TO INDICATIONS BY CFT? 
Cft noted that, more needs to be done to balance the income and expenditure of  Curacao, "The helm must change!"

CFT WARNINGS...
Despite the realization that the task is "big" for Curacao, Cft states that, structural reforms are "inevitable" and necessary to ensure the continuity of the collective facilities and to create the space to compensate for these deficits from next year and to make additional investments, including in education and training. "Increasing the deficits would mean that the public debt will increase further and be passed on to the next generations" 

TO STRENGTHENING CURACAO ECONOMY
According to CFT, to strengthening the Curacao economy, it will require; "Private investments." Also that "a necessary basic condition; for this is the sustainable and sound management of public finances! After all, private investors want to limit their risks and know that they can rely on the stability and quality of the civil service and administrative apparatus."

CFT apparently also said that "progress will also have to be made in the coming years."

HISTORY OF OVER ESTIMATING ASSETS 
It appeared that Curacao was not able to use its capital, with assets, such as its buildings for deficits because apparently in 2012 the value was said; not to be of real value. In the government accounts the buildings were estimated at 500 Million, when some really did worth 315 Million less, when maintenance were taking into account.

SIMILAR SITUATIONS IN THE USA; UNITED STATES OF AMERICA?
The Curacao Government situation could be synonymous with the US Democratic party and US President#45 former lawyer; Michael Cohen; beliefs, that as, the US President Donald Trump over evaluated his assets and presented it to insurance companies and now Congressional committee chair wants Donald Trump's IRS tax papers over the past 6 years, to evaluate and maybe initiate "other millionaire investigation".

PRIME MINISTER EUGENE RHUGGENAATH AND HIS CABINET'S PLAN IS TO TAX THE PEOPLE OF CURACAO MORE BY INCREASING TAX
The inflation in Curacao is projected to worsen! In the voices of many Curasalenos, they expressed that The Prime Minister presented a drastic and dramatically hurtfully tax reform to cover the 127 Million guilders. Some Curasalenos shouted; "The PM is like the "Sheriff of Nottingham", we need a "Robin Hood" or "Robina Hood", to free us from his insanity and taxes!" 
The Prime Minister and his cabinet have previously presented a plan to cover the 127 Million guilders by:
1.) Increasing in excise duties on: beer, spirits and cigarettes,
2.) Increasing the Sales Tax to 9% on all categories.

The Minister of Finance, Kenneth Gijsbertha, indicated that the Council of Ministers has decided to implement the measures in a so call softened form, with a less drastic increase in the taxes by, 1% instead of 2% to 3%.

Therefore for example, currently; the general basic public necessities such as food which are taxed at 6% will then  become 7%.

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