Balanced budget laid down by law

During the budget treatment 2019, I indicated again that every government of the Land Curacao is legally responsible from 10 October 2010 for maintaining a balanced budget balance for Curaçao.

To ensure sound governance and legal certainty, budget standards have been included in the Curaçao Constitution and the National Regulations on Compensation Regulations from 10 October 2010. The starting point of the budget norms is a balanced budget. The regular service must be conclusive or have a surplus and loans can only be contracted to cover expenses on the capital service, taking into account an interest-rate norm.

Article 85 paragraphs 1 and 2 indicate that the budget of the revenue and expenditure of the country is determined by national ordinance. The expenditure estimated on the ordinary budget of a financial year shall be covered in full by the funds taken to cover such expenditure. The expenditure estimated on the capital service shall be covered by the funds taken to cover such expenditure, taking into account the balance of the ordinary service and the expected receipts from the issuance of cash loans.

The size of loans is limited by an interest charge norm to be set by national ordinance. Article 85 (4): the government of Curaçao annually provides a comprehensive multi-annual budget to Parliament.

Article 85, paragraph 6, is the basis for the Curaçao accounting rules and financial management: national ordinances lay down rules concerning the management of the country's finances and an effective accountable order.

Article 7 paragraph 1 and 2 National Ordinance Accountability Regulations: budget and long-term budget included in the ordinary service are covered by the income included to cover those expenses. The obligations included in the budget and the multi-annual budget on the capital duty are covered by the funds taken up to cover those obligations, taking into account the expected receipts from the issuance of loans and the balance of income and expenses of the ordinary service.

By Curtley Obispo

 

Curtley Obispo is a member of Parliament for the ruling party PAR (Partido Alternativa Real). He worked in the past for KPMG and UTS. Obispo is the financial specialist of the PAR faction.




Related News




Share