Finance Minister outlines three-pronged approach to address SZV health fund deficits

GREAT BAY--Minister of Finance Marinka Gumbs told Parliament today that government is pursuing a three-pronged structural approach to address the mounting deficits in the social and healthcare funds managed by SZV, warning that the country can no longer afford temporary fixes to what has become one of St. Maarten’s most serious financial risks.

Presenting the 2026 budget, Gumbs said the government’s approach will focus on healthcare reform through the Sustainable Affordable Access Health Care Act, targeted revenue generation through a proposed tourist levy, and broader tax reform and compliance measures aimed at strengthening domestic revenue.

The Minister said the financial situation at SZV represents an acute structural risk to both public finances and the social safety net. According to Gumbs, the healthcare funds have been losing approximately Cg. 35 million annually, while the cumulative deficit has grown to about Cg. 500 million.

For years, she said, those losses were covered by drawing on reserves from the national pension fund, AOV. Gumbs warned that this approach is unsustainable and could deplete pension reserves within a few years if corrective action is not taken.

“We are not just risking the collapse of healthcare access,” Gumbs told Parliament. “We are risking the collapse of the entire social safety net that our seniors rely on for their survival.”

The Minister said the Board of Financial Supervision, Cft, has correctly warned that there is no more time to lose. She said the 2026 budget does not seek to “paper over” the problem with temporary financial measures, but instead lays the groundwork for structural reform.

The first pillar of government’s approach is the Sustainable Affordable Access Health Care Act, SAHA, formerly referred to as General Health Insurance. Gumbs said the SAHA framework is intended to broaden the pool, streamline healthcare delivery and significantly reduce annual operational losses within SZV.

She said government is executing the required policy work and due diligence so that the legislation can be prepared for implementation as soon as possible.

The second pillar is targeted revenue generation through a proposed tourist levy. Gumbs said the government is working toward a dedicated revenue stream that would support the social security system without placing additional pressure on local workers.

According to the Minister, visitors who benefit from St. Maarten’s tourism product would contribute directly to maintaining the infrastructure and social systems that help keep the country stable.

The third pillar is systemic tax reform and improved compliance. Gumbs said government is working to modernize the tax system, update compliance models, widen the tax base and improve collection. These measures, she said, are intended to generate the domestic revenue needed to close social security gaps in a sustainable way, rather than relying on emergency borrowing.

The Minister acknowledged that solving a half-billion-guilder historical deficit cannot happen overnight. However, she said the 2026 budget marks a turning point in how government intends to confront the issue.

She said the administration is choosing realistic legislative timelines, new revenue streams and structural reform over continued depletion of pension reserves.

“This 2026 budget marks the exact moment we stop draining our seniors’ pensions to hide our healthcare losses,” Gumbs said. “We are choosing the path of structural survival.”

Gumbs presented the SZV reform approach as part of the broader policy-based budgeting framework introduced in the 2026 budget, which links public spending to policy objectives, measurable outcomes and long-term financial responsibility.

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