Published On: Fri, Dec 28th, 2012

Government’s Budget in balance

WILLEMSTAD – For 2013 the expenditures of the Curacao Government is equal to the income, well at least on paper. This is according to the assembled state consolidation for the draft 2013 Government’s budget which was recently presented to the Parliament of Curacao (even though three months late). Throughout the budget it is mentioned that a the balanced budget is not only for 2013 but a long term commitment.

The so-called final grade of the Ordinary Service amounts to 1,618,176,900 guilders (1.6 billion); the final grade of the Capital Account is 270,445,500 guilders (270 million); and thus is the final result of the budget 1,888,622,400 guilders (nearly 1.9 billion).

In the Memorandum of Finances information is provided for the multiannual figures. This serves as an instrument for the 'budget trend' which should be mapped every year. “The 2013 budget closes with a zero balance” which is mentioned under the recapitulation. “The Ordinary Service and the Capital Account are each separately in balance. Also multiannual budget is in balance. “The final grade of the Ordinary service grows in the coming years: from 1618.2 million to 1667.7 million in 2014, one million 1692.3 in 2015 and 1774.5 in the year 2016.

The (first) budget 2012 went from a surplus balance of 44 million on the Ordinary Service, but according to the latest projection there is a deficit of 84.1 million. For 2012 there is still no rating realization known, but in 2011 was the realized deficit on Ordinary Service 166.3 million. Including the Capital Account balance is the 2012 projection -92.9 million and the net realization of 2011 -127.3 million.

The so-called recapitulation also provides insight into the so-called primary balance. That is the overall balance of payments excluding interest. This is for the coming year negative, i.e. -176.8 million. In this primary balance there is a large amount, i.e. 270 million in investments and capital transfers: much more than the 64 million in the 2012 budget. The interest amounts 52.4 million in 2013 (based on an average rate of 3.5 percent).

Herewith is the overall balance or financing balance on - 229 300 000. And that is also the (momentary) financing necessity. The interest grows to 63 million in 2016 due to the recourse on the capital market for capital expenditures.

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