The execution agenda includes information on topics regarding financial management, expenses, and efficiency of the public sector, taxes, financial and economic reform, healthcare, education, and reinforcement of human rights.
The execution agenda for subjects related to finances and the economy in the first quarter of 2021 are:
The research will be conducted into ways to strengthen financial control in Aruba by the Colleges of Advisors, such as the General Audit Chamber, the Advisory Council, and the Central Audit Office. This study should be ready by March 1, 2021. Based on existing and/ or additional research, it will be determined whether the subsidy policy, implementation, and existing subsidy relationships meet the requirements: legality, legitimacy, effectiveness, and efficiency. This research should be ready on April 15, 2021.
It will also determine how the procurement function can be strengthened so that the government can procure goods and services as efficiently and effectively as
possible. This report should also be ready by April 15, 2021.
Either a plan to investigate which indirect tax system is beneficial for Aruba, VAT/BTW or ABB will be made. This plan must be ready by March 1, 2021. The Tax Authority requires data from the banking sector. Hence, an action plan will be made to connect banks, notaries, the social insurance bank, and the pension fund. The plan should also be ready by March 16, 2021.
A plan is being made to facilitate the Tax Department in its efforts to collect taxes optimally. An agreement is being finalized with the Netherlands, Curacao, and St. Maarten to combat tax evasion. This must be ready by March 1, 2021, and will be discussed in the Council of Ministers on July 1, 2021.
A comprehensive review of the financial sector will be made and the IMF’s Article IV mission will inspect this sector.
Based on the results, a plan will be made with possible improvements where needed. This report should be ready in April or May 2021. The report on dollarization will not come out this year but after 2022. An agenda of the laws that need to be introduced or modified will be worked on. They will start with the deposit guarantee scheme and the laws to combat money laundering and
terrorist financing as Aruba will be evaluated by the CFATF this year. A detailed agenda should be ready by March 1, 2021. An agenda for the other laws should be ready by July 1, 2021.
The focus of economic reform is to reduce red tape.
Entrepreneurship and investment climate will be promoted. There must be the optimization of the licensing system, reduction in the costs of doing business, and elimination of bureaucracy (red tape). Based on the results, a research report will be prepared for the measures to be taken to reduce the costs of doing business and bureaucracy. This report should be ready by March 15, 2021.
The economic reform will also include other issues affecting the economy, such as informal economy, labor market analysis, illegal labor, social security, and land policy.
The results of the investigation will adapt to the execution agenda.
For now, the investigations to get an overview of the situation in Aruba are the bulk of the work to meet the conditions for the loan.
Based on the investigation the agenda will be adapted. It will also indicate the necessary steps to take to get the desired reforms.
You can find more information under topic A, C, D, and E of the Implementation Agenda of the financial aid package February 1 – April 2021.