Aruba: First Quarter Deficits Over 100 million Florins already … A Sign of Things to Come

Budget deficits in Aruba …

For the first quarter of the year Aruba is already showing a 100 million florin budget deficit. Over government spending could be one cause; however, do not think that anticipated revenue from taxes from visiting tourists is also not part of the problem as well. Tourism is still not yet at pre-Natalee Holloway disappearance numbers, energy costs are higher and people are not spending as much in vacations. Opposition AVP leader claiming that budget deficit is because of MEP’s excessive expenses for the apparatus of government. However, these issues never used to happen during the Aruban tourism bonanzas.

Deficit first quarter 100 millions already (Amigoe: 5/14/2008)

AVP-leader Mike Eman and his wife Doina have surprised elderly mothers with their visit.  The couple was accompanied by the well-known folklore singer Robert Maduro, who gave the elderly mothers a serenade.

ORANJESTAD – The budget deficit in the first quarter of 2008 is about 100 million florins, concluded opposition party AVP after comparing the budget for the current year with the figures of the income from income-, import-, and excise taxes in the first three months.

These lie respectively 20 and 40 percent behind the estimates.  There is also an arrears of 10 million florins with the premiums of the AZV, 10 millions with Serlimar, and 13 millions due to the indexation.  If the government wants to cover this deficit through tax measures, it’s going to cost the citizens 5 percent of their income, said the AVP.

“We have presented Finance-minister Nilo Swaen a very accurate picture of the deficits that now appear as a so-called surprise.  We did this during the consideration of the above-mentioned budget.”  Eman indicated that it can be done differently and better and refers to the alternative budget that his party has created.

He says that the budget figures clearly show that the deficit does not stem from insufficient income, but from excessive expenses for the apparatus of government.

“The government has increased all sorts of taxes and then used the net-proceeds of the bbo in 2007 to finance the enlargement of the apparatus of government.  In order to pay for hiring extra personnel, the taxes were increased with an extra 100 millions.”

The priorities in the alternative budget of the AVP are: better education, a smaller government, stronger infrastructure, specific reduction in the financial burden of buying power correction, and lowering the interest; a total restructuring of 185 millions.  Not only is Swaen’s budget a ‘sham budget’, but the expenses in the 2008 budget are also of very little policy.