Wever: Real surplus is Afl. 84 million, not Afl. 500 million available for spending

ORANJESTAD – While the opposition and other critics speak of a surplus of Afl. 500 million and even Afl. 700 million that the government could supposedly use to repair roads, lower gasoline costs or address other urgent needs, Finance Minister Geoffrey Wever has put a different figure on the table: the real surplus for this year is around Afl. 84 million, and even that amount cannot be spent freely by the government.

CLARIFICATION DURING NOTICIACLA LIVE

Wever made the clarification Thursday night during the opening of the new season of Noticiacla LIVE, in an interview with Tito Laclé. Laclé confronted the minister directly with the contradiction the public keeps hearing: if Aruba has hundreds of millions in surplus, why does the government not use that money for roads, fuel or other needs?

Wever responded that the figures of Afl. 500 million and Afl. 700 million are being presented out of context.

“The way Dangui Oduber presents the figures is completely taken out of context.”

According to Wever, the figure of approximately Afl. 500 million — in reality closer to Afl. 477 million — relates to the budgetary situation inherited by the current cabinet. It was not a sum of cash sitting in an account that the government could simply decide to spend.

“That money already had a specific destination. So there is no Afl. 500 million available to repair roads.”

OBLIGATIONS AND DEBT THE GOVERNMENT MUST PAY

Wever explained that a large part of that amount was earmarked for obligations and debts the government had to pay. The additional Afl. 200 million now being added to reach the figure of Afl. 700 million, according to the minister, includes collective-sector funds such as SVb and AZV.

“That money may be in an account, but it is not money the government can take and use for general spending. It is social-fund money intended for our insured population.”

THE REAL SURPLUS: AFL. 84 MILLION

According to Wever, the relevant figure for the government’s current surplus is approximately Afl. 84 million, equal to 1% of Aruba’s Gross Domestic Product, based on a GDP of around Afl. 8.4 billion.

But that does not mean the Afl. 84 million is freely available either. Wever explained that under the law that gives the Aruba Financial Supervision Board, CAft, its authority — the Landsverordening Aruba Financieel Toezicht (LAFT) — the government is required to present a budget with a minimum surplus and use the positive result to reduce the national debt.

“That Afl. 84 million is not free money that the government can simply spend; the law determines how it must be used.”

HOW MUCH OF THE SURPLUS CAN GOVERNMENT USE FOR OTHER PURPOSES?

Laclé then took the question to its core: how much of the surplus is actually available for the government to spend?

Wever’s answer was clear:

“At present, there is no surplus available for free spending.”

According to the minister, the Afl. 84 million does exist as a surplus, but the government is legally required to use it, among other things, to repay bank loans and reduce public debt.

HOFA COULD CHANGE THE RULES

Wever indicated that this is precisely one of the arguments for replacing LAFT with HOFA. According to him, LAFT is too rigid because even when the government achieves a positive financial result, the law does not allow it to use the surplus freely for national priorities.

Under HOFA, the calculation would shift to a “primary balance,” measuring the difference between revenue and expenditure without including interest. According to Wever, the standard would be around 3.5% of GDP, potentially giving the government more financial room.

“HOFA will give the government more flexibility and more room to use resources for the country’s needs.”