With investment fund, backlogs on Bonaire, Sint Eustatius and Saba can be better eliminated

Published by Economisch Bureau Amsterdam on

Bonaire, Sint Eustatius and Saba receive a vrije uitkering from the central government for the funding of government tasks. In determining the amount of the vrije uitkering, no account is taken of demographic and economic developments, while such developments do affect the costs of the island tasks. The development of the vrije uitkering also contrasts sharply with the development of expenditure by the central government in the Caribbean Netherlands. The vrije uitkering is due for revision.

Amsterdam Bureau for Economics, commissioned by the Ministry of the Interior and Kingdom Relations, mapped out the financial flows between the central government and the public entities Bonaire, Sint Eustatius and Saba and developed a new methodology for the vrije uitkering. Amsterdam Bureau for Economics also advised on how to implement the Council of State’s (Raad van State) proposal to expand the BES-fund with an investment fund. With this investment fund – provided a number of preconditions have been met – backlogs in public services in the Caribbean Netherlands can be eliminated more effectively and efficiently. Read the full report here.

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