Gumbs: Budget 2026, now submitted, was a shared lesson, Budget 2027 must be a shared success

GREAT BAY--“Budget 2026 was a shared lesson. Budget 2027 must be a shared success.”

That was the message from Minister of Finance Marinka Gumbs as the Ministry of Finance announced that the Draft Budget 2026 has officially been submitted to Parliament for consideration. The Minister acknowledged that the budget was submitted later than intended, but said the experience has already produced lessons that are being applied to the next budget cycle.

According to the Ministry, Budget 2026 marks an important step in Government’s effort to strengthen fiscal discipline, improve public financial management and move toward a more policy-driven approach to national development.

The 2026 Budget projects total revenues of Cg. 647.1 million and total operating expenditures of Cg. 635.9 million. It also provides for Cg. 164.6 million in capital investments aimed at strengthening infrastructure, improving public services and advancing national development priorities.

Government also projects Cg. 5.28 million in loans to third parties and authorizes the Minister of Finance to enter into loan agreements for capital investments of up to Cg. 42.11 million.

On the revenue side, Government projects Cg. 478 million from taxes, Cg. 16 million from permits, Cg. 62 million from fees and concessions, and Cg. 91 million from other income sources.

The consolidated interministerial budget for 2026 amounts to approximately Cg. 608 million across the seven ministries. The Ministry of Education, Culture, Youth and Sport receives the largest allocation at Cg. 126 million, followed by Justice at Cg. 114 million. The Ministry of Public Health, Social Development and Labor is allocated Cg. 109 million.

The Ministry of Finance receives Cg. 91 million, General Affairs Cg. 90 million, TEATT Cg. 41 million, and VROMI Cg. 37 million.

Minister Gumbs said the late submission of the 2026 budget does not represent the standard Government should accept for itself.

“First and foremost, I must acknowledge that Budget 2026 was submitted later than it should have been. This is not the standard we should be operating under as a Government, nor is it the standard our people deserve. We expect taxes to be filed on time, obligations to be met, and rules to be followed. That expectation is valid and necessary for a functioning society. However, we must also be willing to apply that same standard to ourselves. Delays in the budget process affect planning, procurement, project execution, and ultimately the delivery of services to the people of Sint Maarten,” the Minister said.

The Minister noted that the delay was not due to an unwillingness to deliver, but was connected to the complexity of preparing a national budget while also implementing a more rigorous system of public financial management through policy-based budgeting.

Budget 2026 represents the first phase of Government’s transition toward a policy-based budgeting framework. The Ministry explained that this approach is intended to create a stronger link between public spending, policy objectives and measurable outcomes, so that public funds are allocated with clearer purpose and impact.

“Policy-based budgeting moves us beyond simply allocating funds and toward measuring results. Every Caribbean guilder entrusted to Government should be linked to a policy objective, a national priority, and a tangible benefit for the people of Sint Maarten. At the same time, good governance requires honesty about both ambition and capacity. Our national budget cannot simply be a wish list of expenditures. We must ensure that our priorities are realistic, achievable, and matched by our ability to execute them effectively,” Gumbs said.

As the first budget prepared under this framework, Budget 2026 served as a pilot for a more disciplined and policy-driven approach. While the transition contributed to delays, it also exposed areas where Government can strengthen coordination, improve planning and refine the budget preparation process across ministries.

Gumbs emphasized that the lessons from Budget 2026 are already being applied to Budget 2027, which began earlier this year and is progressing according to schedule.

“Budget preparation is not the responsibility of the Ministry of Finance alone. It is an inter-ministerial commitment. Every ministry has a responsibility to submit timely, accurate, and well-prepared policy and financial inputs, while the Ministry of Finance consolidates these into a national framework. The budget process is only as strong as the collective effort behind it. I don't like to speak in terms of failure. I prefer to speak in terms of lessons,” she said.

Preparations for Budget 2027 began in February following the approval of the budget parameters by the Council of Ministers. Ministries have already submitted their policy-based budget proposals, and the Ministry of Finance is now finalizing its review before submission to the Council of Ministers.

“Budget 2027 reflects a higher standard of planning, coordination, and discipline. Our objective is clear: to submit the budget on time while continuing to improve the quality of the budget process. Strengthening public financial management is not a one-time effort. It is an ongoing commitment to better governance, greater accountability, and stronger public trust,” the Minister said.

The Budget aligns with the National Development Vision 2020-2030 and the Governing Program 2025-2028. Its priorities include governance reform, public service improvement, economic resilience, digital transformation, social protection, environmental sustainability and inclusive growth.

Government also acknowledged that while the economy is projected to grow by approximately 2 percent in 2026, external risks remain. These include global economic volatility, inflationary pressures, supply chain disruptions and climate-related shocks. Internal capacity and resource constraints within the public sector also continue to present implementation challenges.

Minister Gumbs thanked the Council of Ministers, Secretaries-General, Financial Controllers, Department Heads and civil servants who contributed to the preparation of Budget 2026.

The Draft Budget 2026 will now proceed to Parliament for review and deliberation.

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