On Monday, the Parliament of Aruba approved the 2023 Supplementary Budget of the country. This is to prevent the Finance Minister from presenting a Start of Year Note and drafting a Supplementary Budget that introduces changes to the 2023 Budget earlier in the fiscal year. The change benefits the budget right of the Parliament of Aruba.
A novum for more transparency
It is to promote Aruba that a Minister of Finance delivers a Parliamentary Year Starting Note. This innovation in our public finances is so that Parliament can be better informed of any changes in governance at any time of the year. With this knowledge, the Parliament can make use of its ‘budget right’ to propose or approve any changes. Through a New Year’s Note, the Government provides greater financial transparency to the Parliament and the people in general. The new insurance contributes to an improvement in Aruba’s budget cycle.
Supplementary budget for 2023
As some policy changes result in financial changes, the Year-End Note is accompanied by a Supplementary Budget and Parliament’s approval of the change in figures in the 2023 Budget. The Supplementary Budget takes into account the new economic growth projection recently published by the Department of Economics, integrates funds received from the Netherlands to implement Landspakket projects into the budget of Aruba and reflects the decentralization of the utility costs of each ministry. Notable changes are, for example, funds being reallocated from the Ministry of Finance to the Ministry of Education to match the ‘standard rate’ which is the amount that schools get to invest in education. From the Ministry of Education, funds are being reallocated to the Ministry of Social Affairs for the Blenchi and Briyante Houses of people with functional limitations.
Budget with 1% surplus
It is important to note that despite the changes in the 2023 Budget, the financial outcome remains the same, with a surplus of 1% of GDP. The latter is important, since after the fiscal year Aruba has a budget with a surplus.