Published On: Sat, Sep 1st, 2012

Jamaloodin: Amended 2012 budget has surplus

WILLEMSTAD -  The Government has earlier than indicated turned in the second supplementary budget for 2012. This was confirmed by Minister of Finance George 'Jorge' Jamaloodin (MFK). According to him, the budget has a surplus of between 30 and 50 million guilders.

In a letter to the Parliament dated August 1, the Minister indicated that he was able to turn in the budget with the relevant changes after September 18. According to the prevailing accounting principles it had to be turned in no later than 15 August.

But despite the delay, the Minister announced the budget amendments were submitted before September 18. According to Jamaloodin the government has conducted a comprehensive analysis of all potential risks and therefore has sought coverage. Therefore an amended 2012 budget with a surplus will be turned in.

One of the risks taken into account is that the basic health insurance is no longer being introduced on September 1. This means that the government could lose the opportunity to save a potential 8 million guilders per month.

The Minister reiterated the position of the government that the instructions received by the Kingdom Council of Ministers on July 13, to take measures to balance the budget, were unnecessary. One part of the instructions, which had to be completed before September 1, was namely to compensate shortages of 2012 and 2011 and to cover losses since health care measures were not being applied and the dividend policy in 2012, was not yet received by the Committee for Financial Supervision (Cft).

This was notified by the Committee in a letter to the Chairman of the Kingdom Council of Ministers, Prime Minister Mark Rutte, on August 22. However, the Cft has received an implementation report on the first two quarters of the year on August 21. The conclusion of the CFT is in  the performance report cannot be inferred that progress was being made in the budget discipline and that the Board is concerned about the progress on key parts of the instructions. There is, according to the Cft there is no strengthening of the control on the proposed measures yet. Simultaneously the Cft predicts a deterioration of the fiscal picture of 2012 and beyond. The Cft has great doubts about coverage measures the government has presented in the second performance report and it also provides a greater budgetary problem than the government indicated in their report.

Not feasible
Regarding the implementation of health care measures (basic health insurance), the dividend policy and the reform of the pensions (AOV) Cft asks whether it actually could be introduced on January 1, 2013 and that the estimated revenue will materialize.

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