www.sxmislandtime.com

PHILIPSBURG - The Executive Council says it has met all requirements for submitting its budget to the Council of Financial Supervision (Cft).

That is the core of the response that will be sent to the body in response to its advice on the 2010 draft budget. A preliminary response has already been sent.

Finance Commissioner Xavier Blackman told the press on Thursday that the Government's full position on the advice as well as details of its revenue generating measures will be given when the Island Council meets in public session. There is no date yet for the meeting. The case will also be made when a meeting is held with the Cft in the week of March 2.

Among the areas of disagreement is whether government should include estimates of revenue and expenditure related to tasks currently carried by the Central Government. The Cft said they think the Territory's budget should not reflect this, but the Administration disagrees.

"We believe that it would unrealistic and irresponsible to present a Budget that does not reflect the changes that will come in 2010," the Commissioner said.

He pointed out that Government could create the budget for the Country and wait to establish it, but they think it better to place the posts within the Island Territory's budget in anticipation of the possibility that things will begin changing.

As those changes take place the Administration "does not want to be bogged down in changing the budget on a daily and/or weekly basis." Blackman also believes it is better to be prepared for the changes with the potential being that government would have to revise its figures downward in the eventuality that the transfer of the various tasks does not happen as quickly as expected.

Blackman also sought to clarify what he labeled misunderstandings of the Cft's role in the budget process as defined in the General Measure Enacting Financial Supervision (AMvRB).

The Council renders advice when the budget is a draft, after it is has been approved by the Island Council and when it is to be amended. Once the advice is received the Government must indicate how many of the recommendations it plans to take on board.

The Finance Commissioner is also not fearful that disagreeing with the Cft will lead to negative reprisals. He used the Central Government's 2010 Budget as an example.

In 2009 the Antillean Government was advised by the Cft to drop provisions showing the dismantling of the Netherlands Antilles. The Central Government replied that it would not and to date there has been "no negative advice" to the Kingdom Council of Ministers of which Blackman is aware.

Blackman believes this is based on the fact that all budgets must reflect all expected income and expenses and they must take into account all the agreements made in the constitutional change process.

Those agreements have now been challenged by the Cft, which says that they are not firm enough. If that is the case, Blackman believes even Chapter four of the Dutch Government's Budget would need revision.

That chapter deals with the Kingdom Relations Budget and has the funds allocated for amongst other things the debt relief that is to be given to the islands and the Central Government.