Published On: Fri, May 9th, 2014

CFT: “Chance for budget deficit, strictly implement policy”

CFTimageWILLEMSTAD - The government is exposed to financial risks in 2015-2016, which could lead to a budget deficit.  This is according to the Chairman of the Committee for Financial Supervision (CFT), Age Bakker. To minimize this, the government’s policy should be more strict.

"Additional measures are not necessary, but the proposed government policies must be implemented," Bakker said. The CFT has recently agreed to a loan of 250 million dollars for the benefit of the new hospital.

The CFT indicated that budget deficits in the period 2010-2012 have caused exhaustion for the government and the people of Curacao. "The strength of Curaçao is now being reinforced by the positive budget for 2013." The CFT is also positive about the implementation of this budget year. So far everything is going according to plan, the Financial Regulator reported during their press conference.

“To be able to continue with the positive developments, the reform must be realized.” It’s especially about savings in operating costs and subsidies, which should produce 130 million guilders starting in 2016. “Measures can no longer be postponed, particularly in the field of employment in the public service. It also enables leeway for the proposed tax cuts for retirees, which will lead to a more equal distribution of the burden,” The CFT said.

In addition, Bakker believes that special attention should be paid to public corporations. This is because they form a risk for the national budget. “The majority of those companies are doing well. However Aqualectra, CPost International and Curaçao Dry Dock Company are in financial dire straits. One problem is, not all of these companies have produced their financial statements.” The government must therefore have a better understanding of the status of these organizations.

 

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