Published On: Sat, Aug 25th, 2012

CFT: Deficits are still higher than previously calculated

WILLEMSTAD - The Financial Supervision (Cft) warns in a letter to Prime Minister Mark Rutte (Netherlands) that a deficit of 152 million guilders to the budget could be even greater than previously calculated.

The Cft has received on August 21, a performance report over the first two quarters of this year. A second supplementary budget, which the government of Gerrit Schotte should propose to comply with the instructions and which should be ready by September 1, has not yet been received. This is to cover the deficit in 2010 and 2011. It should also be distinctly clear how the losses are covered because the measures in health care were not applied on time.

The Kingdom Council of Ministers, has requested from Curaçao to develop a plan on how to improve the capacities and incomes from the State Companies in medium term. This plan should also presented before September 1, but the Kingdom Council of Ministers has not received anything.

The CFT reports now that the previously estimated deficit for 2011 is not 156 but 180 million. In 2013, this deficit will have a structural growth till up to 198 million. But informally it is being reported that even larger deficits must be taken into account.

Tax revenues remain below on the previous estimates. In 2011, tax revenues fell by 80 million guilders compared to the budget. In the first six months of this year, the income will fall short of what was expected and the deficit will be around 18 million guilders.

On the plans for free education, the Cft informs that the performance report shows that the firm plans to provide free education and its finance are not complete. But Cft has learned in the media that the Government intends to pay for this free education from an advance in dividend payment from Refineria di Kòrsou (RdK) (Oil Refinery Curacao). The inclusion of an advancement in dividend payment if there is a dividend policy or dividend decision, is actually borrowing money from the RdK. This is contrary to prevailing accounting principles and the instructions, according to the CFT.

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