Gumbs announces higher 2027 budget surplus of Cg 10 million, opens door for gasoline price relief

GREAT BAY--Minister of Finance Marinka Gumbs announced in Parliament on Tuesday that the projected surplus in the draft 2027 National Budget has increased from Cg 8 million to approximately Cg 10 million following adjustments to government expenditures. The Minister also indicated that the additional Cg 2 million could be earmarked to provide relief from gasoline prices, provided the amount remains available after Parliament completes its consideration of the budget.

The announcement came during the public parliamentary debate on the draft 2027 National Budget, where Gumbs outlined the government's revised financial projections, spending priorities, borrowing requirements and ongoing efforts to strengthen public financial management.

According to the Minister, total government revenues for 2027 are projected at approximately Cg 670 million, an increase of Cg 23 million compared to the 2026 budget. Following adjustments submitted through a formal amendment to the draft budget, projected ordinary expenditures have been reduced to approximately Cg 660 million, producing the revised surplus of Cg 10 million.

The improvement follows the removal of approximately Cg 3 million associated with the treatment of the ENNIA resolution arrangements, partially offset by the inclusion of approximately Cg 1 million in building rental and maintenance expenses under the Ministry of General Affairs that had been omitted from the original submission.

Gumbs explained that the government's revenue projections are based on existing sources of income and anticipated economic growth. The budget does not include expected collections from new revenue measures that still require legislative approval or implementation.

Tax revenue remains the government's largest source of income, with approximately Cg 497 million projected for 2027. This represents an increase of Cg 19 million compared to the previous budget and is linked primarily to anticipated economic growth, higher business activity, wages and consumer spending.

Personnel expenditures remain the largest spending category at approximately Cg 288 million, followed by goods and services at Cg 180 million and subsidies at Cg 106 million. Other expenditure categories include social provisions, interest payments, depreciation, scholarships and allowances.

Additional Surplus Could Fund Gasoline Relief

One of the principal announcements concerned the possibility of using the additional Cg 2 million surplus to reduce the cost of gasoline for consumers.

Gumbs informed Parliament that the Ministry of Finance has already assessed a possible temporary reduction of the special import duty on gasoline from 29 cents to 14.5 cents.

She acknowledged that gasoline prices affect household expenses and the wider cost of living and doing business in St. Maarten.

The Minister indicated that if the additional Cg 2 million resulting from the budget adjustment is not affected by further amendments, the amount could be earmarked to support gasoline price relief.

The proposal remains conditional and does not yet constitute an approved reduction in gasoline taxes or retail prices.

Budget Discipline and Timely Approval

Beyond the revised surplus, Gumbs highlighted progress in restoring discipline to the national budget process.

The draft 2027 budget was submitted to Parliament in September, marking the first timely submission of a national budget since St. Maarten became a country within the Kingdom of the Netherlands on October 10, 2010.

The Minister attributed this development to earlier preparations, clearer deadlines and improved coordination among government ministries, financial controllers, secretaries-general and other stakeholders.

The government's next objective is to secure parliamentary approval, adoption and publication of the 2027 budget before the December 15 deadline.

Gumbs emphasized that the 2027 budget is intended to support stronger public institutions, improved service delivery, digitalization, social support and sustainable financial management.

She also cautioned that continued fiscal discipline will be necessary as government faces pressure from growing personnel costs, debt obligations and the need to finance essential investments.

The proposed Cg 10 million surplus and potential gasoline relief allocation remain subject to the final budget amendments and parliamentary approval.

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