[{"bbox": [97, 153, 1134, 233], "category": "Text", "text": "in the framework of the LAft are to reduce the debt to GDP ratio to 70% in 2031 and to 50% in 2040. In case the improved fiscal balance reflected by the Budget 2023 is sustained in forthcoming years and surpluses are used for debt reduction these targets for the debt to GDP ratio are within reach and can possibly be achieved earlier."}, {"bbox": [97, 251, 1134, 303], "category": "Text", "text": "In conclusion, the authorities are pursuing a stability-oriented macroeconomic policy and the eligibility criterion is met."}, {"bbox": [86, 325, 485, 352], "category": "Section-header", "text": "### 2.3.3. Public Financial Management (PFM)"}, {"bbox": [97, 380, 1134, 464], "category": "Text", "text": "Aruba has not performed a formal diagnostic assessment using the Public Expenditure Financial Accountability (PEFA) Framework. However, as part of the cooperation with the Dutch Government, Aruba has set up reform plans in financial management and domestic revenue mobilisation as part of the Landspakket."}, {"bbox": [97, 478, 1134, 677], "category": "Text", "text": "The approach of this package is that the five key PFM areas were selected for reform: financial control, subsidy expenditures, budget preparation, fiscal policy and public procurement. For each of the areas, the reform process commenced with the preparation of a tailored diagnostic study. In the domain of Domestic Revenue Mobilization (DRM), a diagnostic assessment in the subdomain of tax policy was conducted in 2018 by the IMF. The report was at the basis of the tax reforms adopted in the context of the adoption of the budget 2023 (Belastingplan 2023). Only in the domain of tax administration, a diagnostic assessment is lacking. Notwithstanding, the lack of a formal diagnostic report, the Landspakket identifies four priority actions to strengthen the tax administration."}, {"bbox": [97, 691, 1134, 891], "category": "Text", "text": "Implementation of the reforms is closely monitored through quarterly progress reports, which are prepared by mixed working groups. Progress reports are signed off by the State Secretary of the Ministry of the Interior and Kingdom relations of the Netherlands and the Minister President of Aruba and are on-line available. In the Dutch autonomous countries, the responsibility for coordinating the implementation of the reforms lies with the Ministers of General Affairs and the implementing organisations falling under them. In the Netherlands, coordination lies with the Ministry of the Interior and Kingdom Relations and is executed by the Tijdelijke werkorganisatie (Temporary Work organisation, TWO). A number of significant reforms have already been implemented."}, {"bbox": [97, 904, 859, 931], "category": "Text", "text": "The main weakness remains the backlog in presenting timely the Annual Accounts."}, {"bbox": [97, 959, 1134, 1012], "category": "Text", "text": "In conclusion, the public financial management reform strategy is sufficiently relevant and credible, including on domestic revenue mobilisation, and the eligibility criterion is met."}, {"bbox": [86, 1039, 534, 1066], "category": "Section-header", "text": "### 2.3.4. Transparency and Oversight of the Budget"}, {"bbox": [97, 1093, 931, 1120], "category": "Text", "text": "The entry point is met as the budget proposal and the enacted budget are publicly available."}, {"bbox": [97, 1134, 1134, 1264], "category": "Text", "text": "The 2023 draft budget was submitted to Parliament by the end of August 2022. Due to the deliberations and updated economic data, a revised draft budget was submitted early November and part of the budget adopted by Parliament on 11 November 2022. The changes compared to the draft budget are laid down in a Note of Amendment ('Nota van Wijziging'). The Note of Amendment was separately published on the website of the Parliament.²⁵"}, {"bbox": [97, 1279, 726, 1306], "category": "Text", "text": "The following weaknesses identified which need to be improved are:"}, {"bbox": [135, 1320, 1134, 1404], "category": "List-item", "text": "- The Government of Aruba has built up a backlog in the preparation of annual accounts since the start of the COVID-19 pandemic. As a consequence, there is no audit. The last audited annual accounts date from the fiscal year 2018."}, {"bbox": [135, 1405, 955, 1434], "category": "List-item", "text": "- Public access to the published budget and budgetary documents is cumbersome.²⁶"}, {"bbox": [86, 1523, 1097, 1572], "category": "Footnote", "text": "²⁵ https://statenvanaruba.ibabs.org/Agenda/Document/8e1a858a-9335-42eb-a188-7fe6b2f6a3c0?documentId=b68c70c4-8456-41a6-8ce5-555935f0dd16&agendaItemId=9caa7183-f74a-4b7f-86f6-944478c70646"}, {"bbox": [86, 1572, 1143, 1644], "category": "Footnote", "text": "²⁶ The government publishes its documents on the following website: www.overheid.aw. Budget execution reports are available but not the budget itself. The budget is available on the Parliament's website, however the access to various budgetary documents can be facilitated."}, {"bbox": [1028, 1682, 1143, 1705], "category": "Page-footer", "text": "Page 11 of 28"}]