Reprinted from Caribbean Net News
caribbeannetnews.com

Budget deficit in Suriname tripled

Thursday, October 5, 2006

by: Ivan Cairo
Caribbean Net News Suriname Correspondent
Email: ivan@caribbeannetnews.com

PARAMARIBO, Suriname: In comparison with 2006, the budget deficit for the fiscal year 2007 in Suriname will triple to 650 million Surinamese dollars (US$232 million).

In his budget presentation in parliament Monday president Ronald Venetiaan noted that his government expects an income of US$585 million while government expenditure will be in the amount of US$817 million.

According to the Suriname Planning Authority, the budget deficit of US$232 million will amount to 11 percent of the Gross National Product.

In comparison with the 2006, budget tax revenues will increase by US$58 million. The Head of State stressed that his administration will continue preparations to establish a new Internal Revenue Service, in order to improve the effectiveness of the bureau.

Venetiaan also announced new legislation to adjust the sales tax bill. A so-called ‘positive list’ will make way for a ‘negative list’, regarding several taxable services. Furthermore the administration will strike off discrepancies between the sales tax for imported items and goods manufactured in Suriname.

Monetary policies in the fiscal year 2007 will concentrate on obtaining a better credit rating for Suriname, to make borrowing on the international financial markets easier for the production sector. “Furthermore the government will also pay attention to catch up with the arrears in external debt repayment.” Venetiaan said.

As expected the budget presentation was greeted with mixed reactions. Members of parliament from the coalition were cautiously optimistic, while members of the opposition voiced hard criticism.

Coalition MP Adiel Kallan uttered concerns over the deficit, claiming that in the end less of the intentions will be materialized since financing is always a problem.

According to opposition leader Jiwan Sital, the government is not only misleading parliament but also the whole nation with the budget presentation.

He noted that a couple of weeks ago when the Long Term Development Plan 2006-2011 was debated in parliament the government claimed that the deficit for 2007 would be around US$59 million. “When the president is telling us now that the deficit is estimated on US$232 million, I guess we can throw the Long Term Development Plan in the waste basket.”

Several other coalition and opposition members also questioned the extent of the budget deficit.

The National Assembly will debate the budget later this year

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