PHILIPSBURG: --- As Sint Maarten counts down to a new year, the state of the nation’s finances raises a serious alarm. Under the stewardship of Minister Marinka Gumbs, the Ministry of Finance has become synonymous with policy paralysis, abandoned reform, and unprecedented fiscal disorder, all at a time when the country can least afford it.
Despite holding the finance portfolio for over a year, the Minister has introduced no new tax legislation. Every substantive tax measure currently in force originates from the previous administration. Worse still, the Minister halted the structured process toward a modernized tax system that was already underway, without putting any alternative plan in place. As a result, Sint Maarten is now heading toward four consecutive years without a new tax system, forcing citizens and businesses to shoulder the burden of an outdated and inefficient framework while reform remains indefinitely stalled.
Paralysis at the Heart of Government
This legislative inertia mirrors a broader paralysis across public finance. The 2025 budget amendment arrived late, despite repeated assurances to Parliament that timelines would be respected. Even more concerning, the 2026 budget is already late, signaling a continuation of dysfunction rather than a course correction. Budgeting is the single most fundamental responsibility of any Minister of Finance, yet delays have become normalized under this administration.
Most alarming of all is the unprecedented situation in which government funds are being spent without Parliament's approved budget. This is not a minor administrative lapse. It represents a fundamental breakdown of constitutional order and parliamentary oversight. Spending without an approved budget erodes democratic control over public finances and sets a dangerous precedent that Sint Maarten cannot afford to institutionalize.
Promised Revenue, Then Silence
Against this backdrop of fiscal distress, the Minister publicly promised to introduce flyover fees as a new revenue-generating measure, presented as a way to strengthen state finances without increasing the direct tax burden on residents. Since that announcement, however, the issue has gone completely silent. No draft legislation, no implementation plan, no follow-up. Another promised revenue stream quietly disappeared, while the government continues to plead poverty.
Tax Holidays in a Broke Country
At the same time, the Minister has pushed through a significant number of tax holidays, even in cases where advisory bodies issued negative advice. This defies fiscal logic. When the government repeatedly claims it lacks the funds to meet obligations, the obvious question arises. Why is Sint Maarten giving away revenue?
Tax holidays should be exceptional and strategic. Instead, they are being granted in bulk, without transparent disclosure of their cumulative cost or how they align with a treasury already stretched thin. Every dollar waived through a tax holiday must be recovered elsewhere, usually from compliant taxpayers.
CAPEX Approved, Execution Absent
The pattern of dysfunction extends to execution. Since 2023, capital expenditure funding has been approved for the construction of a canteen at the Receivers Office, a project the Minister herself publicly acknowledged in a press release. To date, nothing has materialized. Approval exists. Funding exists. Execution does not.
Institutional Weakness at the Central Bank
Sound fiscal management depends on strong institutions, yet Sint Maarten still lacks finalized board representation at the Central Bank of Curaçao and Sint Maarten. This prolonged institutional gap weakens oversight, undermines confidence, and reflects a broader neglect of financial governance at the highest level.
Dividend Withholding Tax and Business Uncertainty
While comprehensive tax reform has been abandoned, the Minister continues to champion a dividend withholding tax, leaving the business community in a state of uncertainty. No clear framework, transition period, or economic impact assessment has been presented. Businesses are left unable to plan or invest with confidence, while policy ambiguity reigns.
Civil Servants Left Waiting
Adding to the growing strain is the mounting backlog in payments owed to civil servants. Bonuses, gratifications, and cost-of-living adjustments are already delayed, with indications that these obligations will not be settled until the second half of next year. For public servants who rely on these payments, this delay is not abstract bookkeeping. It affects household stability, morale, and trust in government. At a time when workers are continually being asked to make sacrifices, the inability to honor earned compensation underscores the depth of the fiscal mismanagement now confronting the country.
The Soul Beach Subsidy Scandal
Compounding these concerns is the Soul Beach subsidy controversy, where established procedures under the subsidy framework were not followed, despite the ordinance having been approved by the Minister herself and the Council of Ministers of Sint Maarten. When financial rules are selectively applied, public trust in governance erodes rapidly.
A Ministry Without Fiscal Direction
Taken together, the picture is unmistakable. A stalled tax system. Broken revenue promises. Excessive concessions in a cash-strapped country. Late budgets. Spending without parliamentary approval. Institutional vacancies. Selective adherence to financial rules. And public servants are left waiting for what they are already owed.
As the New Year approaches, Sint Maarten deserves more than explanations and press releases. It deserves fiscal leadership grounded in law, execution, and accountability.
The clock is ticking.
The people are paying.
And the cost of paralysis grows by the day.
