Government to spend
half of 2007 budget
WILLEMSTAD--The Central Government has decided that it will spend only half of the 2007 budget, in light of the target date July 1, 2007, on which the islands of the Netherlands Antilles hope to obtain their new constitutional statuses.
Finance Minister Ersilia de Lannooy said during Wednesday’s press briefing that the instructions on using only half of the budget had been sent to all departments. The budget will be handled in December.
The Central Government has decided to implement very strict rules on how to use the available budget. “No Minister can take any decision that will have negative consequences for the new entities. Also the Council of Ministers decided that as of January only cost regarding the transferring of tasks from the Central Government to the islands is allowed to be made,” De Lannooy said.
The Central Government needs NAf. 40 million till the end of the year to pay all its obligations. A bond will be issued in December, said De Lannooy.
She has also been active concerning the various tasks that have to be executed within the financial sector. She said the Central Government, the island territories and the Round Table Conference Preparatory Committee V-RTC had been working on how to continue with the financial situation.
“A report was drafted in April about the financial sector, including regulations about control and laws that have to be implemented,” De Lannooy said.
An implementation plan has been made, including the work that has to be done such as drafting annual reports and multi-annual budgets. What has to happen during the transition period and after July 1, 2007, will also be part of the plan.
“If the Central Government ceases to exist at that point in time there still will be several things that cannot be stopped, such as arrangements made to pay tax over a longer period of time,” she said.
De Lannooy said several options had been tabled to keep addressing issues during the period after obtaining a new status. “We have three options. A civil servants committee can be installed, a group falling directly under the Governor’s cabinet can be established or the new entities can be put in charge,” De Lannooy said.
Of all responsibilities falling under De Lannooy, she said the financial sector would be used as a pilot project. “I have regular meetings with the Finance Commissioners on the subject of decentralising and reorganising the financial sector. The decentralisation of taxes has already started. A draft law on decentralising the Tax Inspectorate has been sent to Parliament,” she said.
Other areas such as Customs and the Tax Accounts Bureau BAB still have to follow. An assessment of how the new entities want their tax organised will be made soon, the Minister announced.
According to De Lannooy the personnel want to know what will happen next year. Two project leaders have been appointed to determine the finance and tax trajectory for the new entities. “By February there has to be more clarity on the financial organisation of the new entities,” the Minister said.
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