Kotai demands answers from Finance Minister: Where are the plans, where are the investments?

GREAT BAY--Member of Parliament Viren Kotai has sharply questioned Minister of Finance Marinka Gumbs over the government's handling of the 2026 budget, the absence of a comprehensive investment plan, delays in tax reform and the proposed establishment of a Development Bank, arguing that St. Maarten is being presented with new financial initiatives while longstanding commitments and requirements remain unresolved.

Speaking during Wednesday's continuation of the 2027 national budget debate, Kotai focused on the October 29 advice of the Committee for Financial Supervision (CFT), which could not issue a positive opinion on the government's requested 42.1 million guilders in borrowing for 2026 investments.

The MP questioned why government had increased its loan request from 37.5 million guilders to 42.1 million guilders while failing to provide the multiyear investment plan repeatedly requested by the financial supervisory body.

Kotai noted that the CFT had raised several concerns as early as February 2026 and repeated them in July, yet its latest advice indicated that the requested measures had either not been sufficiently addressed or, in one instance, had not been addressed at all.

Among the issues he highlighted were approximately 30 million guilders in additional personnel and operational expenditure without sufficient substantiation, social benefits budgeted below previous actual expenditure and inconsistencies in figures relating to government's available cash.

He acknowledged that Parliament also contributed to the late adoption of the 2026 budget and credited the Minister of Finance for restoring the 2027 budget process to the legally required timetable. However, he argued that neither accomplishment addresses the substantive weaknesses identified by the CFT.

Kotai questioned which projects would be affected by the absence of a positive CFT opinion on the financing request and whether government had adequately warned Parliament and the Council of Ministers that the funding was at risk.

He requested a complete list of the projects intended to be financed through the 42.1 million guilders, including their locations, beneficiaries, expected completion dates and current status.

He also questioned how much of the approximately 98 million guilders in investments announced for 2026 could realistically be implemented before the end of the year.

The MP asked whether delayed implementation would result in higher construction costs, lost employment opportunities, additional maintenance expenses or complications with existing contracts and financing arrangements.

He further requested written updates on each of the CFT's outstanding recommendations and clarification on whether government could still secure financing for any of the affected investments during 2026.

Tax Reform Without a Clear Roadmap

Kotai also questioned the progress of the country's tax reform process, pointing out that Parliament had been discussing the first phase for more than a year without receiving a comprehensive implementation roadmap.

He recalled that government submitted the first phase of tax reform in October 2025, primarily addressing the repeal of outdated tax ordinances. However, he questioned why the Minister's presentation for 2027 continued to emphasize advancing that same phase.

The MP referenced previous information indicating that substantial reforms involving profit tax and wage tax could still be 36 to 48 months away.

He questioned whether Parliament was being asked to approve approximately 900,000 guilders for tax reform in the 2027 budget without sufficient information about the complete implementation schedule, the cost of externally funded technical assistance and the responsibilities of the tax administration.

Kotai also requested clarification on the proposed visitor levy, including when the legislation would reach Parliament, when collections could begin and whether anticipated revenue had been incorporated into the 2027 budget.

Questions Development Bank Proposal

The MP further challenged the government's decision to commission a feasibility study into establishing a Development Bank before resolving the deficiencies identified in its existing investment planning.

He noted that government had confirmed the commissioning of the study but had not provided Parliament with its cost, terms of reference or expected completion date.

Kotai questioned what evidence exists that businesses cannot obtain financing through commercial banks, Qredits or other established financing arrangements, and requested information identifying the size and sectors of any financing gaps.

He also sought clarification on a separate multisector investment fund mentioned by the Minister of Finance, asking whether this represented another study, what it would cost and how it would be financed.

The MP asked government to commit to placing the multiyear investment plan before Parliament before making any final decision to establish a Development Bank.

Financial Transaction Tax Deserves Examination

Kotai also questioned the Minister of Finance about the financial transaction tax concept recently presented by the Minister of Tourism, Economic Affairs, Traffic and Telecommunication.

Rather than calling for its immediate introduction, he asked whether the Finance Ministry would support economic and fiscal modeling to determine whether such a system could provide an alternative approach to government revenue collection.

He referenced approximately 11.8 billion guilders in payment transactions examined for 2022 and questioned whether the scale of that activity warranted further study.

Kotai asked whether the proposal could be assessed against the existing tax structure, including its potential effects on revenue, compliance, administrative costs and economic activity.

He further questioned whether a transaction-based tax could eventually allow government to reduce, restructure or replace certain existing taxes if economic modeling demonstrated that such an approach would be beneficial.

Throughout his contribution, Kotai emphasized Parliament's responsibility to scrutinize government spending and ensure that financing proposals are supported by credible figures, realistic implementation schedules and proper accountability.

His central concern was that St. Maarten continues to discuss new financial mechanisms while projects remain delayed, investment plans incomplete and tax reforms without firm implementation dates.

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