WILLEMSTAD — The Land wants to set a good example regarding finance management. Besides the annual budget figures, the government therefore recognizes additional reports on the compliance of budget plans. This transparency of financial affairs should be instructive for most of the population. "Recent research points out that 60 to 65 percent of the people have problems with financial management", Minister Ersilia de Lannooy (Finances, PNP) motivated the increased transparency regarding finances.
"This means, for example, that these people already have such a cash flow problem when they receive their salary that they have to borrow money – often against exorbitant interest rates." According to the minister, the habit to act mysteriously about (personal) financial matters such as the salary amount, or having savings, does not help this unfortunate situation.
One of the four public financial reports, which the government uses, reviews how the individual ministries stick to their budget. The minister, or whose ministry or directorate infringes the budget regulations, receives a dunning letter from Finances. The relevant official for his/her part should bring those responsible to account. After three warnings, such a government official could be dismissed. It could concern the use of money, which is not budgeted or money that was approved for a different purpose.
This ‘finger on the pulse’ appears effective in that respect that all ministries have stuck to the agreed upon budget better since the past two, three years – which for that matter is regulated by law.
Surplus
The land finances are doing well. The possible local affects of the international financial crisis was taken into account upon the drawing up of the budget for the current year.
When the windfalls and setbacks regarding sales tax, import taxes, and transfer tax cancel each other out, the budget for 2009 should also close with a surplus of millions, just as that of 2008. By supervising the compliance of the strict loan regulations, the government will uphold the interest burden norm. In this, the loan behavior of (independent) government institutes is also curbed as their paid interest is of influence on the interest burden of the land government. The government could otherwise exceed the interest burden norm by the loan behavior of institutes such as SVB, BAB, UNA, and FZOG.
For De Lannooy, the first days of October will be in the theme of the annual meeting of the International Monetary Fund (IMF). This important, international meeting, which was held in Washington for two consecutive years, and one year outside the United States, will be held in the Turkish Istanbul this year.
The expectation is that during the usual workshops and lectures, experiences will be exchanged on the manner in which the participating nations cope with the financial crisis.
They will also look forward to learning how everyone had complied with the IMF-regulations. Due to the crisis, the IMF saw its opportunity to introduce or tighten up various guidelines – without notable opposition.
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