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Suriname: Ministry of Finance: Budget deficit SRD 6.8 billion and no SRD 12.9 billion

The Ministry of Finance and Planning believes that the budget deficit related to the draft state budget 2021 is 6.8 billion and not 12.9 billion as claimed by the Association of Economists (VES). That of the VES is not correct, the total revenue in the Draft State Budget of 2021 amounts to SRD 15,349,230,000, while the total expenditure is estimated at SRD 22,141,627,000.

Based on these amounts, it can be concluded that the estimated revenue will not cover the estimated expenditure for 2021. The deficit that occurs here amounts to SRD 6,792,397,000 or SRD 6.8 billion. This deficit is expressed as a percentage of the Gross Domestic Product (GDP).

Since the Planbureau Suriname Foundation estimated the GDP at SRD 34.4 billion, the budget deficit is 19.7 percent of GDP and not 46 percent as calculated by the VES. In order to substantiate the above, an explanation is hereby given of the structure of the ‘income’ as well as the ‘expenditure’ of the state.

The revenue for the financial year 2021 is included in the Resources budget and includes, among other things, the financial resources with which the expenditure for the relevant service year will be financed. The Resources Budget is made up of three parts and with corresponding amounts is as follows:
– The government revenues are SRD 10,547,337,000 and consist of the Non-Tax Resources and the Tax Resources.

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