St. Maarten’s total public debt has reached ANG 1.42 billion, equivalent to 46% of GDP

GREAT BAY--St. Maarten’s total public debt has reached Xcg 1.42 billion, equivalent to 46 percent of GDP, according to the latest review by the College financieel toezicht (Cft). In its assessment of the country’s second execution report (UR) for 2025, the Cft also noted that payment arrears to public entities remain high at Xcg 142 million, primarily to the Social and Health Insurance (SZV) and utility company GEBE.

The Cft warned that the government’s cash reserves declined sharply during the second quarter of 2025, falling by Xcg 41 million to Xcg 150 million at the end of June. Of that amount, only Xcg 5 million is expected to remain freely available by year-end, with the rest earmarked for investment projects. The Cft urged the government to maintain a liquidity buffer equal to at least one month of expenditures, in line with International Monetary Fund (IMF) guidelines, to absorb potential shocks.

Despite these concerns, the report showed a provisional surplus of Xcg 47 million on the ordinary service, ANG 24 million more than budgeted, driven by higher-than-expected tax receipts and reduced spending. Total income for the first half of 2025 stood at Xcg 312 million, while expenditures totaled Xcg 265 million.

The Cft welcomed the inclusion of seasonal tax patterns in the execution report but said the government still lacks clarity on which revenues are incidental and which are structural. The category “other income” rose by ANG 18 million, largely due to uncategorized bank transactions caused by missing payment descriptions.

Up to mid-2025, St. Maarten invested Xcg 48 million of its Xcg 278 million capital budget, using funds carried over from previous years. The Cft approved an additional ANG 30 million loan for new investments, provided that the government finalizes its promised budget amendment before the end of 2025. Planned investments include the Pointe Blanche prison expansion and land acquisition for social housing.

While recognizing improvements in financial management over recent years, the Cft said persistent weaknesses continue to undermine fiscal credibility. The 2025 budget was again approved late, and the second-quarter report was submitted almost two months past the legal deadline. These delays, coupled with incomplete financial data from GEBE and the Postal Services, limit transparency and Parliament’s ability to exercise effective budgetary oversight.

To strengthen financial discipline and reporting, the Cft urged the Government of St. Maarten to:

• Clearly separate incidental from structural revenues.

• Resolve bank transaction identification issues that distort income reporting.

• Include a comprehensive investment progress update in the next report.

• Submit updated financial data for GEBE and the Postal Services.

• Finalize and submit collective sector data for 2021–2027, still pending despite repeated requests.

The Cft concluded that although St. Maarten’s mid-year figures show a budget surplus, the country’s tight liquidity, rising arrears, and reporting delays remain critical risks that must be addressed to safeguard fiscal stability.

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