WILLEMSTAD. – A crisis premium is not going to be the solution for the situation that the country is currently going through. A crisis premium of 5%, as it was proposed, is something that will not have an immediate effect, it will only count for the period that sets it. It will help lower the government’s budget deficit, but that will only be temporary. A crisis premium of 5% will be able to generate 200 million guilders and will give immediate relief to the budget, but it does not have a structural character.

From the moment that the Rhuggenaath cabinet took office in 2017, this government made several exercises and adjustments to lower costs and increase its revenues to achieve a balanced budget. However, the income from taxes, dividend and other entries fell short. Doing the calculation, the measures to reduce expenses in 2017 and 2018 add up to 66 million, but taking a look at the entries generated in the same period it is seen that revenues were short with 67 million. That is according to the statement of the finance minister, Mr. Kenneth Gijsbertha, at a press conference.

In the same period that Gijsbertha is sitting as a minister, he introduced a general stop to government commitments. He also reduced the subsidy to foundations with 5%, expenses for consultants was reduced from 13 to 6 million, the health budget was cut with 5% in what concerns the generic line, the budget was reduced with 55 million thanks to other actions that were taken. At the same time several decisions were taken to improve the budgetary management in the public apparatus. Minister Gijsbertha emphasized that we are on a crossing and not doing anything is not an option. The financial situation of the country was presented to the social partners in the National Dialogue table and also to the Parliament of Curaçao. The government, based on a report from the budget review committee, made a package of measures for the short, medium and long term. They received suggestions from the trade association, the Chamber of Commerce, the SSK trade union center, the hotel association and the foundation that safeguards the rights of entrepreneurs in Pietermaai.

 

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