Philipsburg, Sint Maarten – As public discussion about the National Budget continues, the Minister of Finance believes it is important to clearly explain how the Government’s budget is prepared and what role each part of Government plays in that process.
Preparing the National Budget is a shared responsibility. The Ministry of Finance coordinates the process, but it does not prepare budgets for other Ministries or decide how much money each Ministry gets. Those decisions are made together by the Council of Ministers, in line with the Comptabiliteitslandsverordening.
To support a better understanding of the process, the Minister of Finance provides the following step-by-step overview.
Step 1: Strategic Budget Session
The budget process begins with a strategic session involving Ministers, Secretaries General, Financial Controllers, Cabinet staff, the Financial Policy Department (FBBB), and the Policy-Based Budgeting (PBB) Project Team. During this session, Government’s priorities, national needs, and available financial resources are discussed. Ministers present the priorities of their respective Ministries and identify the resources required to achieve their policy objectives.
Step 2: Council of Ministers Establishes the Budget Framework
Based on these discussions, the Council of Ministers collectively determines the Government’s policy priorities, strategic objectives, budget parameters, and financial allocations for the upcoming fiscal year.
This is a collective decision-making process in which Ministers advocate for their Ministries while balancing the needs of Government as a whole, within the available fiscal space. For example, during one budget cycle, the Ministries of VSA and TEATT agreed to reduce portions of their own budget requests so that funding could be made available for a priority within the Ministry of Justice.Once approved, these allocations become the official budget parameters within which each Ministry must prepare its budget. These are not recommendations. They form the financial framework for the National Budget.
Step 3: Ministries Prepare Their Budgets
Each Ministry prepares its own budget based on the priorities and financial allocations approved
by the Council of Ministers. Every Minister remains responsible for determining how the approved resources will be utilized to achieve the Ministry’s policy objectives. The Ministry of Finance does not prepare another Ministry’s budget. Once completed, each Ministry submits its budget to the Ministry of Finance for consolidation.
Step 4: Ministry of Finance Coordinates and Consolidates the Budget
The Ministry of Finance reviews each Ministry’s submission to ensure that it:
- complies with the financial parameters approved by the Council of Ministers;
- is complete and internally consistent;
- is fiscally sustainable; and
- can be incorporated into the National Budget.
This is a coordination function—not one of rewriting or reducing another Ministry’s budget. If a Ministry submits a budget exceeding its approved allocation, it cannot simply be incorporated into the National Budget. Since the National Budget is one consolidated financial document, any increase by one Ministry affects Government’s overall expenditure. Unless additional revenue is identified or expenditure is reduced elsewhere by a decision of the Council of Ministers, the budget would no longer be balanced.
The Ministry of Finance therefore works with Ministries to bring their submissions within the agreed framework. These adjustments implement decisions already made by the Council of Ministers; they are not unilateral budget cuts by the Minister of Finance.
Meeting submission deadlines is equally important. The National Budget cannot advance until every Ministry has submitted its budget. Delays by one Ministry delay the entire budget process.During the 2026 and 2027 budget cycles, the Ministry of Finance, together with the Financial Policy Department (FBB) and the Policy-Based Budgeting (PBB) Project Team, worked closely with all Ministries by providing technical guidance, improving planning, and strengthening budget submissions.
Step 5: Internal Legal Review
Once the draft National Budget has been consolidated, it is submitted to the Department of Legal Affairs for legal review. This review ensures that the draft budget complies with all applicable legal and procedural
requirements before it is presented to the Council of Ministers for approval.
Step 6: Council of Ministers Approves the Draft National Budget
Following the legal review, the draft National Budget is submitted to the Council of Ministers. The Council reviews the complete budget package and, if satisfied, approves it as the Government’s official draft National Budget. This approval is a collective decision of Government.
Step 7: External Review by the CFT and Council of Advice
After approval by the Council of Ministers, the draft National Budget is submitted for external review by:
- the Committee for Financial Supervision (CFT); and
- the Council of Advice (RvA).
Each institution reviews the budget within its statutory mandate and may provide comments, advice, or recommendations.
Step 8: Processing of External Advice
The Ministry of Finance coordinates the incorporation of the recommendations received from the CFT and the Council of Advice.Where amendments are required, these are made to ensure that the draft budget remains legally compliant, fiscally responsible, and consistent with the recommendations received.
Step 9: Final Legal Review
Following the incorporation of the external advice, the revised draft National Budget is returned to the Department of Legal Affairs for a final legal review. Legal Affairs verifies that all required amendments have been correctly incorporated and confirms that the budget is legally and procedurally sound before proceeding to Parliament. This serves as an additional safeguard to ensure that the budget is complete, consistent, and
compliant with all applicable legal requirements.
Step 10: Submission to Parliament
After completion of all required reviews and approvals, the draft National Budget is submitted to Parliament through the Governor. Parliament then debates, considers, and ultimately decides on the approval of the National Budget in accordance with its constitutional procedures.
Clarifying Common Misconceptions
- Misconception: The Minister of Finance has the authority to unilaterally determine another Ministry’s budget.
- Fact: Financial allocations are determined collectively by the Council of Ministers. Each Ministry prepares and executes its own budget. The Ministry of Finance coordinates the budget process, ensures compliance with the framework approved by the Council of Ministers, and consolidates the National Budget in accordance with the Comptabiliteitslandsverordening.
- Misconception: Any increase requested by a Ministry should automatically be reflected in the National Budget.
- Fact: Budget requests are assessed against the financial framework approved by the Council of Ministers, the country’s available fiscal space, and the Ministry’s demonstrated ability to effectively utilize additional resources. Not every request can or should be accommodated.
- Misconception: If a Ministry requests additional funding, it is because its existing budget is insufficient.
- Fact: Budget requests are evaluated alongside historical expenditure patterns. In some cases, Ministries requesting additional funding have not fully utilized or absorbed the budgets already allocated to them in previous fiscal years. Strengthening budget execution remains an important consideration when assessing requests for additional resources.
- Misconception: Every proposed initiative can be executed immediately if additional funds are made available.
- Fact: Successful implementation depends on more than funding alone. Some initiatives require enabling legislation, approved policies, organizational restructuring, procurement processes, or specialized personnel before they can be effectively executed. Where these prerequisites are not yet in place, additional funding alone will not result in successful implementation.
- Misconception: The Ministry of Finance cut Ministry budgets during the 2026 and 2027 budget processes.
- Fact: No Ministry’s budget was reduced. Every Ministry received an increase compared to the previous fiscal year. Discussions centered on ensuring that requested increases remained within the financial allocations and budget parameters collectively approved by the Council of Ministers.
The Minister of Finance emphasizes that the budget process depends on every Ministry fulfilling its responsibilities within the framework approved by the Council of Ministers. Each Ministry prepares and executes its own budget, while the Ministry of Finance coordinates the process.
Respecting the approved budget ceilings and timelines is essential to preserve the credibility of the National budget and prevent unnecessary delays. No individual Minister is above the collective decisions of the Council of Ministers. The Ministry of Finance remains committed to supporting Ministries in strengthening financial planning, improving budget quality, and ensuring that public funds are managed responsibly, transparently, and in accordance with the law.
