How to modernize public finances? Minister of Finance Marinka Gumbs lays out four measures

GREAT BAY--Minister of Finance Marinka Gumbs has outlined four concrete policy measures that will guide the Ministry of Finance, with emphasis on modernizing the Tax Administration, improving the national budget process, strengthening Government’s financial controls and advancing comprehensive tax reform.

Presenting the measures during the public meeting on the 2026 national budget, Gumbs said the initiatives are intended to move the Ministry beyond simply managing day-to-day financial operations toward building a more modern, efficient and accountable financial system for St. Maarten.

The four measures form part of the Ministry’s broader objectives of maintaining sustainable public finances, increasing transparency and public trust, strengthening St. Maarten’s economic position and ensuring that economic development produces wider benefits for the population.

Modernizing the Tax Administration

The first measure is the continued modernization of the Tax Administration.

Government intends to advance the development of digital taxpayer portals, introduce modernized processing systems and invest in the training and development of Tax Administration personnel.

According to Gumbs, the objective is to make tax assessment, processing and collection more efficient while improving compliance, reducing administrative burdens and providing better service to taxpayers.

The Minister said the modernization effort is reflected directly in the Ministry’s 2026 budget. The Staff Bureau allocation increases by approximately 34 percent to Cg. 19.1 million, partly to support the Ministry’s digital transformation agenda, including the implementation of an Enterprise Resource Planning system, process redesign and continued ICT transformation of the Tax Administration.

The Audit Department’s allocation also increases substantially, rising by approximately 82 percent to Cg. 1.49 million. Gumbs described this as an investment in stronger compliance and enforcement capacity aimed at reducing revenue leakage and narrowing the difference between taxes owed and taxes actually collected.

Fiscal Affairs is budgeted at approximately Cg. 856,000, an increase of 74 percent, to provide greater capacity for tax reform, fiscal policy development and modernization of St. Maarten’s tax framework.

Improving the National Budget Process

The second measure focuses on reforming the way Government prepares and manages the national budget.

The Ministry intends to establish a more uniform budget instruction process, introduce clearer timelines for budget preparation, strengthen revenue forecasting and improve quarterly financial reporting.

The goal is to provide Government with more reliable financial information, identify problems earlier and make adjustments before financial challenges become more difficult to manage.

The Minister also highlighted the introduction of a more policy-based approach to budgeting. Rather than presenting the national budget primarily as a list of expenditures, Government is seeking to link spending more clearly to policy objectives and expected results.

This approach, she said, should also provide Parliament with clearer benchmarks to determine whether Government is delivering on the commitments for which public funds were allocated.

Stronger Financial Management and Internal Controls

The third measure is strengthening financial management and internal control across Government.

This will include continued implementation of the Enterprise Resource Planning system, strengthening the internal audit function and redesigning several important Government processes.

Among the areas identified for improvement are procurement, revenue collection, grant management, payroll administration and financial reporting.

The intention is to establish stronger systems and clearer controls that reduce financial risk, improve accountability and strengthen the management of public resources.

Gumbs acknowledged that public confidence in Government’s financial management has been affected over the years by fragmented systems, inefficiencies and weaknesses in oversight.

The reforms, she indicated, are intended to address those weaknesses while providing Government with more reliable and timely information about its financial position.

Comprehensive Tax Reform

The fourth policy measure is comprehensive tax reform.

Gumbs said St. Maarten’s existing tax system has served the country for many years but has become increasingly complex, fragmented and difficult to administer efficiently.

The Ministry therefore intends to continue moving toward a tax system that is simpler, more transparent and equitable, while also being easier for taxpayers to understand and Government to administer.

The reform is also expected to focus on improving compliance and strengthening the country’s revenue base over time.

Gumbs linked a stronger tax system to Government’s ability to address broader structural financial challenges, including long-term obligations that continue to place pressure on the public finances.

She stressed throughout her presentation that improving revenue collection is not simply about Government collecting more money. Stronger compliance, she argued, creates the fiscal space necessary to fund national priorities and ensures that those with tax obligations contribute fairly.

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