Finance Minister: First quarter surplus of Cg. 39 million shows 2026 budget is realistic

GREAT BAY--Minister of Finance Marinka Gumbs told Parliament that St. Maarten recorded a provisional surplus of Cg. 39 million in the first quarter of 2026, a result she said was Cg. 36 million more favorable than projected in the draft 2026 budget.

According to the Minister, the positive first-quarter result was driven by approximately Cg. 9 million in additional revenues and Cg. 27 million in lower-than-budgeted expenditures. She said the figures reinforce confidence in the fiscal position presented in the 2026 budget and support government’s position that the budget is realistic.

Gumbs noted that government expects the result to even out during the course of the year, as revenue and expenditure patterns typically peak in the first and fourth quarters. However, she said the early performance shows that the assumptions behind the 2026 budget are not overstated.

The Minister explained that lower expenditure levels in the first quarter were mainly due to reduced personnel costs and lower spending on goods and services. The personnel cost variance was largely linked to the fact that the civil servant indexation had not yet been applied, while lower goods and services spending was mainly connected to project execution under the TWO and Trust Fund programmes.

She added that even if first-quarter expenses had materialized exactly as budgeted, government would still have recorded a surplus of approximately Cg. 12 million, based on Cg. 171 million in revenue against Cg. 159 million in budgeted expenses.

The Minister said the first-quarter result is consistent with last year’s performance and that both revenues and expenditures are moving in explainable directions. When compared to the first quarter of 2025, total revenues increased by Cg. 8.8 million, driven mainly by a strong rise in tax income of Cg. 29.8 million. This was partly offset by a decrease in other income of Cg. 20.9 million.

On the cost side, total expenses grew by Cg. 7.3 million compared to the first quarter of 2025. Despite higher revenues and expenses overall, Gumbs said profitability remained stable, resulting in a surplus comparable to the first quarter of 2025.

The Minister said the first-quarter figures demonstrate that the 2026 budget is based on sound assumptions and that St. Maarten’s fiscal outlook remains stable.

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