Editorial: Pay attentionPOSTED: 09/11/14 7:06 AM
The Cft recently published its report on the financial state of affairs for both Curacao and St. Maarten and there are positive developments in both countries that are worth applauding, while imparting wise words of caution.
The good news is that St. Maarten is on track, if developments continue, to have a balanced budget. The importance of continued fiscal discipline for this young political entity cannot be underscored enough. After the dismantling of the Netherlands Antilles, the island was given a remarkable new shot at life with its relatively low debt to GDP ratio.
But that can change with poor political decisions based on unsound and unsustainable economic policy. Politics and economics are essentially two sides of the same coin; the two are virtually inseparable. This is where St. Maarten has to tread wisely from here on out or we will blow our fortunate financial position and get ourselves caught in an inescapable debt trap like many of our neighboring islands, who built up high levels of debt over the years since their political independence decades ago.
Continued improving of our financial management along with better rates of tax collection is needed.