2019 Bu dget f or Real Ch an ge

The Republic of Suriname Ministry of Finance

NOV 2019

REPUBLIEK SURINAM E
TABLE OF
CONTENTS

PAGES 03, 04 PAGES 33?40

Foreword from the Support for the Country
Minister Development Plan

PAGES 05, 06 PAGES 41, 42

2019 Main Budget Conclusion
Objectives

PAGES 07, 08 PAGES 43?45

What is the Glossary of Terms
Government Budget?

PAGES 09?20
How are We Financing the
Suriname Budget?

PAGES 21?32
How are We Investing
the Budget?
 We created Suriname?s
FOREWORD FROM Savings and Stability
Fund to encourage the
diversification of state
THE M INISTER revenues and generate
a revenue stream for
future generations. We
broke ground on the
new Customs Office
Building, which will
I am pleased to present the 2019 Budget for Real Change Snapshot. This promote efficiency and
document chronicles Suriname?s progress, and serves as a foundation for modernization,
the 2020 Budget for a Sustainable Future. encouraging continued
economic development.
Suriname has significantly moved forward, and this snapshot provides
We played an important
tangible proof points of successfully implemented initiatives that support
role in promoting sustainable growth in our country and environmental
the Suriname National Development Plan. As a result of actions taken by
consciousness in the world. And, we continued to open our country to the
the Ministry of Finance, the economy is recovering steadily with two
world, increasing trade and investment opportunities that help us move
consecutive years of growth. Inflation has decreased significantly and
Suriname forward.
continues to fall. Exports and imports are stronger, and the positive
economy outlook has garnered the attention of the international business We have accomplished this and more. The 2019 Budget for Real Change
community, with companies planning and increasingly investing in Snapshot demonstrates that we kept our promise to place the people?s
Suriname. wellbeing first and create sustainable economic growth. Because the
prosperity of our people is the measure of our collective success, and our
The actions of the Ministry of Finance that foster economic stability are
joint priority has always been the wellbeing of Suriname and the
based on three important drivers: transparency, diversification and
Surinamese people.
integrity. Through these, we have improved the collective wellbeing of the
Surinamese people and have effected real positive change. Through
capacity building, international collaborations and increased economic
diversity, we are driving growth in our country. In 2019, we began revenue
administration and financial management reforms.

Gillmore Hoefdraad
Minister of Finance

03 04
 2019 M AIN BUDGET
OBJECTIVES

The 2019 Budget for Real Change places the Surinamese people first. The
focus of the Ministry of Finance is supporting economic growth that
directly benefits the Surinamese people.

Technical financial know-how is important, but not enough. A

comprehensive budget must include certain values to serve as guideposts.
That?s why transparency, diversification and integrity are at the core of the
2019 Budget for Real Change.

As the Surinamese economy continues to recover, the 2019 Budget brings

to reality the necessary measures to foster economic growth, open
Suriname to increased foreign investment and support businesses to focus
on social services, infrastructure and development.

05 06
WHAT IS THE
GOVERNM ENT BUDGET?
Wh at is t h e Su r in am e
Gover n m en t Bu dget ?
The budget describes what the government plans to accomplish for the
upcoming fiscal year. The budget describes how money is collected from
taxes, and other sources. The plan demonstrates how this revenue
supports services to the people of Suriname.
Wh y do We Need On e?
Just like a person, the government can only spend available money. The
government prioritizes spending by accurately estimating the money
collection. Budget is prepared on an annual basis, based on analysis of
people's needs and priorities. The budget aligns with national
development goals.
Budgets are submitted to the elected representatives in the National
Assembly for approval. The budget guides, controls and tracks government
agencies that use public funds.
07
How ar e Bu dget s Cr eat ed?
Forecasting revenues and prioritizing expenses enable effective budgeting.
Estimating revenues requires forecasting future economic conditions.
These conditions include expected growth, key commodity prices, and
trade between Suriname and the rest of the world. Expenses include
recurrent spending and public investments. Spending needs often outpace
available resources. The government makes tough allocation decisions
including when to take on debt. Those decisions are based on country
needs and priorities according to the national development goals.
Wh at is In clu ded in t h e
Bu dget ?
Budgets include revenue and expenditure estimates. Revenue estimates
include funds the government expects to collect from taxes, and other
sources. Expenditure ceilings are set based on the revenue forecast.
Government agencies prepare expenditure plans based on these ceilings.
First, they estimate how much it will cost to maintain the current level of
services. This is the recurrent budget. They also estimate how much it will
cost to improve service levels. This is the capital budget.
08
 HOW ARE WE FINANCING
THE SURINAM E BUDGET?

The government generates revenue from direct taxes, indirect taxes and In 2019, Non Tax Instruments will generate 2,641.9 SRD Millions (41%) of
non tax instruments. We expect our non-mining sector revenues to revenue budget. Taxation also increases economic diversification. Indirect
continue growing. Increasing non-mining sector revenues diversifies taxes will generate 2,047.0 SRD Millions (31%) of revenue budget. Direct
government income. This Economic diversification reduces the negative taxes will generate 1,799.0 SRD Millions (28%) of revenue budget.
impact of commodity price volatility. More funding sources will come from
loan disbursements and grants. These loan disbursements are provided by
multilateral, bilateral and commercial institutions. All these funding Dir ect Taxes Non -Tax In st r u m en t s
sources will help the economic expansion and prosperity of Suriname. 1,799.0 2,641.9
28%
41%

SRD
Bu dget Fin an cin g Com posit ion %
(M illion s)

Revenues 6,487.90 52.2%

In dir ect Taxes 31%
Loan Disbursements 5,848.90 47.0%
2,047.0
Grants 103.4 0.8%

Tot al 12,440.20 100%

Type of Reven u e SRD (M illion s)

Direct Taxes 1,799.0

Reven u es by Type Indirect Taxes 2,047.0

Fiscal policy has strengthened our economy and will continue to do so. Non Tax Instruments 2,641.9
Government revenues will continue to increase with further economic
expansion. Tot al 6,487.9

09 10
HOW ARE WE FINANCING Dir ect Taxes
THE SURINAM E BUDGET? The following table describes estimated direct tax collection. More than
99% of projected direct taxes come from: Income tax 1,733.4 SRD Millions
(96.4%), Casino tax 35.0 SRD Millions (1.9%) and Dividends tax 16.7 SRD
Millions (0.9%).

Reven u e Based on M in in g & SRD (M illion s)

Non -M in in g Sect or
Dir ect Taxes SRD (M illion s)
Tot al M in in g Non -M in in g

Tax 3,846.0 1,152.0 2,694.0 Income 1,733.4

Non-Tax 2,641.9 1,370.0 1,271.9 Casino 35.0
6,481.9 2,522.0 3,965.9 Dividend 16.7
Total
38.9% 61.1% Lottery 4.3

Property 3.7
Reven u e Based on t h e M in in g & Rental Value 3.3

8,000.0 Non -M in in g Sect or Source 2.5

M in in g
7,000.0 Non -M in in g Tot al 1,799.0

6,000.0

5,000.0
3,965.9
4,000.0

3,000.0
2,694.0
2,000.0 1,271.9

1,000.0 2,522.0
1,152.0 1,370.0
?
Tax Non -Tax Tot al

11 12
HOW ARE WE FINANCING
THE SURINAM E BUDGET?

Dir ect

Taxes

In dir ect Taxes SRD (M illion s)

In com e
35.0
Casin o Import Duties 740.1

Dividen d Sales Tax 592.2

1,733.4
Lot t er y Fuel Consumption Tax 147.1
Pr oper t y 16.7 Levy on Tobacco & Cigarettes 138.3
Ren t al Valu e
Timber Exports 99.9
4.3
Sou r ce 3.7 Vehicle Tax 83.0
3.3
2.5 Levy on Spirits 79.4

Levy on Beer 62.9

Levy on Non-Alcoholic Drinks 57.2

In dir ect Taxes Statistics Duties 40.1

Indirect tax collection demonstrates our diversity of revenue sources. This Entertainments Tax 7.0
makes Suriname resilient to commodity price fluctuations. Top indirect
Tot al 2,047.0
revenue sources are: Import duties 740.1 SRD Millions (36.2%), Sales tax
592.2 SRD Millions (28.9%), Fuel consumption tax 147.1 SRD Millions (7.2%)
and Levy on tobacco and cigarettes 138.3 SRD Millions (6.8%).

13 14
 HOW ARE WE FINANCING
In dir ect
THE SURINAM E BUDGET?
Taxes

SRD
Non Tax In st r u m en t s
(M illion s)
592.2 147.1
Dividend 769.8

740.1 Royalties 639.0

99.9 Proceedings from electricity sales to EBS 350.0

83.0 79.4
Sale of Government Assets 235.0
138.3
62.9 57.2 40.1 Received AOV/General retirement provision 180.0

7.0 Land Taxes, field fees, rent, land rent and charges 90.0
Im por t Du t ies Tim ber Expor t s Levy on Income semi-government institutions 58.8
Non -Alcoh olic
Sales Tax Veh icle Tax Dr in k s Permit fees 52.8
Fu el
Levy on Spir it s St at ist ics Du t ies Proceeds from Consular Services 46.3
Con su m pt ion Tax
Levy on Tobacco & En t er t ain m en t s
Levy on Beer Timber fee 43.9
Cigar et t es Tax
Profits Central Bank of Suriname 27.3

Levy Fees 25.5

Non Tax In st r u m en t s Other non tax instruments 123.5

Tot al 2,641.9
Non tax instruments, estimated at 2,641.9 SRD Millions, represents 41% of
total government revenue. Leading contributions are: Dividend 769.8 SRD
Millions (29.1%), Royalties 639.0 SRD Millions (24.2%), Electricity sales to
EBS 350.0 SRD Millions (13.2%) and Sale of Government Assets 235.0 SRD
Millions (8.9%). The combination of these provides for more than 75% of
total non tax instruments.

15 16
HOW ARE WE FINANCING
THE SURINAM E BUDGET?

Non Tax

In st r u m en t s

Dividen d Tim ber Fee Levy Fees

Royalt ies Pr of it s Cen t r al Ot h er n on t ax

Ban k of in st r u m en t s
Pr oceedin gs Su r in am e
f r om Elect r icit y
Sales t o EBS
Sale of
Gover n m en t
Asset s
Received
AOV/ Gen er al 769.8 639.0
Ret ir em en t
Pr ovision
Lan d Taxes, Field
Fees, Ren t , Lan d
Ren t an d
Ch ar ges
In com e
Sem i-Gover n m en t 235.0 180.0 90.0
In st it u t ion s
350.0
Per m it Fees
58.8 46.3 43.9
Pr oceeds f r om
Con su lar Ser vices 123.5
52.8 27.3 25.5

17 18
HOW ARE WE FINANCING
THE SURINAM E BUDGET?

Disbu r sem en t s an d Gr an t s Disbu r sem en t s an d

Gr an t s
Government revenues are crucial for further economic expansion. More
funding sources are needed to maintain and fund future projects and
programs. Multilateral funding will continue to serve as our main external
financing source with over 5,563.8 SRD Millions (93.5%). Commercial 6,000.00
lending will fund 270.1 SRD Millions (4.5%). Grants will also fund our 5,563.8
budget with about 103.4 SRD Millions (1.7%), and bilateral funds of about
15.0 SRD Millions (0.3%). These extra funds enable sustainable economic 5,000.00
growth and expansion. SRD (M illion s)
4,000.00

SRD
Disbu r sem en t s an d Gr an t s % 3,000.00
(M illion s)

Multilateral 5,563.8 93.5% 270.1

2,000.00
Commercial 270.1 4.5%

Grants 103.4 1.7%

1,000.00
Bilateral 15.0 0.3% 103.4
15.0
Tot al 5,952.3 100% 0.00
M u lt ilat er al Com m er cial Gr an t s Bilat er al

19 20
 HOW ARE WE INVESTING
THE BUDGET?

Expen dit u r es by COFOG

Total expenditure for 2019 is 14,080.3 SRD Millions to continue funding
economic expansion. Economic development, social protection and
education are our top priority sectors.

Expen dit u r es by Classif icat ion of t h e SRD

%
Fu n ct ion s of Gover n m en t (COFOG) (M illion s)

Economic Development 4,085.7 29.0%

Social Protection 2,988.7 21.2%

Education 2,165.4 15.4%

Public Order and Safety 1,360.1 9.7%

Health 1,287.9 9.1%

General Public Services 942.4 6.7%

Environmental Protection 634.9 4.5%

Defense 333.6 2.4%

Housing and Community Amenities 232.9 1.7%

Recreation, Culture & Religion 48.7 0.3%

Tot al 14,080.3 100%

21 22
 HOW ARE WE INVESTING
THE BUDGET?

Econ om ic Gen er al Pu blic

Developm en t
SRD 4,085.7 | 29.0%
Expenditures for: general
economic, commercial,
and labor affairs;
agriculture, forestry and
fishing; fuel and energy;
debt management;
mining, manufacturing,
and constructs and
maintains public goods;
transport; and
communication.
Social
Pr ot ect ion
SRD 2,988.7 | 21.2%
Expenditures to
promote wellbeing and
related with programs
and projects that cater
to the vulnerable
groups of our society,
senior citizens and
persons with
disabilities.
Pu blic Or der Ser vices
Edu cat ion an d Saf et y Healt h
SRD 942.4 | 6.7%
SRD 2,165.4 | 15.4% SRD 1,360.1 | 9.7% SRD 1,287.9 | 9.1%
Expenditures for: Expenditures for: police Expenditures for: general
pre-primary, primary, services, law courts, and Expenditures for: administration, fiscal
secondary and higher maintenance of prisons, hospital services, management, foreign
education, among among others; in order public health services affairs and other
others, to provide to guarantee effective and medical products governance services.
accessible education to law enforcement, legal and equipment.
everyone, so then protection and security Enabling effective and
citizens can participate for the entire society. correct
in cultural, social and implementation of
economic processes to health care policies,
lead to prosperity. among others.

Expenditures for: waste Expenditures for: military defense,

En vir on m en t al management and processing,
Pr ot ect ion pollution abatement, biodiversity
and landscape protection, waste
SRD 634.8 water management and other
4.5% environment protection endeavors.
research and development for
Def en se defense, among others; with the
objective to co-guaranteeing safety
SRD 333.6
on the entire territory of Suriname
2.4% as a fundamental condition for
development.

Hou sin g an d Expenditures to support the Recr eat ion , Expenditures for: development and
Com m u n it y housing needs, including of the poor Cu lt u r e an d promotion of sports in the broadest
and those within the vulnerable sense and the development and
Am en it ies groups of the society. Among Religion supervision of young people outside
SRD 232.9 others, this sector also provides SRD 48.7 school, as well as ensure the preservation of
1.7% drinking water supply to fulfill 0.3% Surinamese cultural heritage and respect for
another basic human need. religious diversity.

SRD amounts expressed in millions.*

23 24
HOW ARE WE INVESTING
THE BUDGET?

Expen dit u r es by In st it u t ion 2019 Allocat ed Bu dget by M in ist r y

SRD
(M illion s)
Expenditures by institution are listed in the following table. Education
continues to be our top priority. Education is crucial for the economic Foreign Affairs 162.0
success of our country. Public works and infrastructure development
Home Affairs 583.0
enables economic expansion. Social affairs is also important to ensure the
safety of the Surinamese people. Education will receive a total allocation of Justice and Police 484.1
2,196.1 SRD Millions. Public Works will receive 2,683.1 SRD Millions and
Labor, Technology Development & Environment 43.1
Social Affairs will receive a total of 905.0 SRD Millions.
Natural Resources 133.4

Planning, Land & Forest Management 35.3

SRD Public Health 671.2

2019 Allocat ed Bu dget by M in ist r y
(M illion s) Public Works 2,683.1

Agriculture, Livestock & Fisheries 445.0 Regional Development 245.1

Defense 340.0 Social Affairs 905.0

Education 2,196.1 Sport and Youth 52.2

Finance 4,989.7 Trade & Industry 112.0

Tot al 14,080.3

CONTINUED

25 26
 HOW ARE WE INVESTING
THE BUDGET?

Expen dit u r es by
Expen ses by M ain Cat egor y
M ain Cat egor y
Capital investment will be the largest expenditure category at 30.3% of
Goods & Ser vices
budget allocations. Government salaries and wages will spend 23.4% of
the allocated budget. Subsidies and contributions will also take an
important 22.5% of the budget. Amortization, interests, goods and services Capit al Expen dit u r es
combined will represent 23.8% of total expenditures. Am or t izat ion & 7%
In t er est s

30%
17%
SRD
Expen dit u r es by M ain Cat egor y %
(M illion s)

Capital Expenditures 4,260.0 30.3%

Salaries & Wages 3,290.0 23.4%

Subsidies & Contributions 3,173.0 22.5% 23%

Amortization & Interests 2,431.0 17.3% 23%

Su bsidies &
Goods & Services 926.3 6.5% Con t r ibu t ion s

Tot al 14,080.3 100%

Salar ies & Wages

27 28
 HOW ARE WE INVESTING
Relevan t Pr oject s THE BUDGET?
Prosperity and economic expansion remains the main focus of the
government of Suriname. To do so, the government will continue funding
our priority projects. A total of 1,568.5 SRD Millions will be spent in public
works and natural resources. The relevant projects seen in these programs Relevan t Pr oject s SRD (M illion s)
aim to construction and road improvements.

A total of 1,430.6 SRD Millions are allocated to economic developments Econ om ic Developm en t & Pu blic Ser vices 1,430.6
147.1
and public services. These projects support flight safety, an agro industrial
park, fiscal and economic growth. These projects also aim to develop a
competitive Surinamese entrepreneurial environment. Improvement of Flight Safety 857.9

A total of 1,260.9 SRD Millions will be spent on social protection, Agro Industrial Park 266.2
83.0 public
79.4
health, education and culture. These projects aim to improve public Fiscal Development to Support Economic Growth 143.7
housing, institutional strengthening and health. Education projects focus
on vocational and primary education. Cultural projects aim to 57.2 40.1
revitalize the Development Entrepreneurial Climate and
40.7
historic city centre. Competitiveness

Stimulating Agriculture Sector 40.2

Relevan t Pr oject s SRD (M illion s) ICT Automation 19.7

Buyers Credit Agreement Pumping Stations 15.0

Pu blic Wor k s an d Nat u r al Resou r ces 1,568.5
Agricultural Project Brokopondo 10.0

Construction/Improvement of Roads 572.3 Livestock Farming 5.6

Sea Protection 376.0 Restart Agricultural Company vonFreyburg 3.0

Dalian 5 Project 363.4 Industrial Sector Development 1.1

Dredging Suriname River 150.4 Other Economic Development & Public Services
27.5
Projects
Reinforcement of Natural Resources Affairs 54.1

Improvement of Irrigation and Drainage Works 36.4

Renewable Energy (Solar, Hydro and Wind energy) 11.9

Building of Bridges 4.0

29 30
 HOW ARE WE INVESTING
THE BUDGET?

Relevan t Pr oject s SRD (M illion s) Relevan t Pr oject s SRD (M illion s)

Social Pr ot ect ion 825.0 Edu cat ion an d Cu lt u r e 202.4

Emergency Reserve 750.0 Support for the improvement of Vocational Education 126.7

Public Housing 65.7 Improvement Primary Education in Suriname 37.0

Other Social Protection Projects 9.3 Revitalization of the Historic City Center 30.1

Other Education and Culture Projects 8.6

Relevan t Pr oject s SRD (M illion s)

Pu blic Healt h 233.5

Institutional Strengthening of Hospitals 150.0

Medication Facility BGVS for the Community 65.0

Other Public Health Projects 18.5 Tot al Relevan t Pr oject s SRD 4,260.0 M

31 32
 SUPPORT FOR THE
COUNTRY DEVELOPM ENT
PLAN

Su bsidies an d Con t r ibu t ion s

Subsidies and contributions are designed to improve social wellbeing and
prosperity of life of Surinamese people.

During 2019 Social Protection has allocated 2,105.3 SRD Millions (66.4%),
Education and Sports Programs 492.9 SRD Millions (15.5%), Public Health
Programs 416 SRD Millions (13.1%) and supporting Economic Development
& Public Services 158.8 SRD Millions (5.0%).

33 34
SUPPORT FOR THE
COUNTRY DEVELOPM ENT
PLAN

Su bsidies & Con t r ibu t ion s SRD (M illion s) Su bsidies & Con t r ibu t ion s SRD (M illion s)

Social Pr ot ect ion 2,105.3 Edu cat ion an d Spor t s Pr ogr am s 492.9

Support to Energy Reform 950.0 Special Primary Education 305.0

Supplement to the Pension Fund 754.0 Anton de Kom Universiteit of Suriname 160.0

Public Housing 150.0 Christian Pedagogical Institute 8.8

Financial Assistance for People with Disabilities 64.6 Polytechnic College Suriname 3.0

General Child Benefit 57.6 Special Industrial Education 1.5

Assistance for Socially Weak Households 49.7 Subsidy for Sports Organization 1.5

Agricultural Project BrokopondoLow Income Shelter 16.6 Contributions to Government Institutions 1.0
Program (LISP)
Contribution to Youth and Cultural Organizations 0.3
Poverty Reduction 13.5
Other Education and Sports Programs 11.8
Support to Private Social Institutions 7.5

Support to Government Social Institutions 5.0

Bureau of Homeless 3.5

Foundation Aftercare Conscripts 2.1

Other Social Programs 31.2

35 36
SUPPORT FOR THE
COUNTRY DEVELOPM ENT
PLAN

Su bsidies & Con t r ibu t ion s SRD (M illion s) Su bsidies & Con t r ibu t ion s SRD (M illion s)

Pu blic Healt h Pr ogr am s 416.0 Econ om ic Developm en t & Pu blic Ser vices 158.8

Health Insurance Support 150.0 Parastatals Support 83.7

Strengthening Public Health System 55.0 National Institute for Environment and Development
18.6
Suriname
Medical Deployment of Localized Provision 45.6
Shipping company Suriname (SMS) 5.0
Foundation Medische Zending 33.0
Interior Development 3.7
Foundation Regional Health Services 33.0
Suriname Standards Bureau (SSB) 3.6
Nursing and Medical Provision for Chronic Psychiatric 25.0
Centre Gold Sector Organization 3.5

Central Training for Nurses and Practitioners 13.0 Labor Mobilization and Development (SAA) 3.4

Marwina Hospital (SMZ) 11.5 Bauxiet Institute Suriname 2.5

Foundation Youth Dental Care 11.0 National Rice institute 2.3

Additional Support for Medical Care 10.0 Suriname Hospitality and Tourism Training Center 1.3
(SHTTC)
National Blood Bank of the Surinamese 4.0
Other Economic Development & Public Services 31.2
Healthcare Transport 1.7

Other Public Health Programs 23.2

Tot al Su bsidies &

Con t r ibu t ion s SRD 3,173.0 M
37 38
SUPPORT FOR THE
COUNTRY DEVELOPM ENT
Top 15 Pr ogr am s SRD (M illion s)
PLAN
Support to Energy Reform 950.0

Improvement of Flight Safety 857.9

Supplement to the Pension Fund 754.0

Top 15 Pr ogr am s Construction / Improvement of Roads 572.3

The Suriname government will continue funding important programs. A Sea Protection 376.0
total of 5,531.3 SRD Millions is allocated to social services and
Dalian 5 Project 363.4
infrastructural development. The top 15 programs, shown in the table on
the next page, support energy reform, flight safety and pension funding. Special Primary Education 305.0
Other important programs support infrastructural development, sea
protection, and housing. Agro Industrial Park 266.2

Public Housing 205.7

Pr ogr am s by Anton de Kom Universiteit of Suriname 160.0

Dredging Suriname River 150.4

Cat egor y
Health Insurance Support 150.0

Institutional Strengthening of Hospitals 150.0

Social Ser vices
In f r ast r u ct u r e Fiscal Strengthening to Support Economic Growth 143.7
26% 51%
Support for the Improvement of Vocational Education 126.7

23%

Developm en t

39 40
 CONCLUSION

As promised, 2019 has been a year of real change. We have implemented

economic policies that have furthered Suriname?s growth, increased
foreign investment, and developed projects to benefit the wellbeing of
Suriname and the Surinamese people. Indeed, we have come a long way.

We have worked to diversify the economy, to instill transparency in our

processes, and to build a solid foundation for the future, with integrity. The
data and figures are proof that the measures we have taken have garnered
positive results. The result is a solid foundation upon which we can build a
bright future in Suriname.

Our actions focus on improving the delivery of services that our people
receive and assuring that the management of our country?s finances and
resources are optimized. The investment in capacity building,
infrastructure development and economic diversification is creating a
sustainable economic environment.

The 2020 Budget for a Sustainable Future is a continuation of these efforts

and will yield fruitful results. We continue to focus on opening Suriname to
the world, growing the economy and consolidating positive change in
order to increase opportunities for our citizens and ensure continued
wellbeing. The Surinamese people continue to be our priority. That is how,
together, we keep moving Suriname forward.

41 42

GLOSSARY OF TERM S
COFOG, Classification of the
Functions of Government. It is a
standard defined by United Nations
Statistics Division. It represents the
amount of money government will
spend in 10 general categories:
Defence, Economic Affairs,
Education, Environmental
Protection, General Services,
Health, Housing and Community
Amenities, Public Order and Safety,
Recreation, Culture and Religion,
Social Protection.
43
Bu dget in g is the allocation of
revenues and borrowed funds
across agency programs, activities
and projects. Budgeting seeks to
achieve socio-economic goals that
are fiscally prudent and
sustainability.
Debt refers to payment to
creditors, in the form of interest
payments, and net lending
(advances less repayments) for
payables as:
- Ext er n al debt is debt borrowed
from foreign lenders including
commercial banks, governments
or international financial
institutions. These loans,
including interest, are usually
paid in the currency in which
the loan was made
- In t er n al debt is debt that
borrowed within a country,
including commercial banks.
Econ om ic diver sif icat ion
is the process of shifting an
economy from a single to multiple
revenue sources. This includes
increasing revenue from different
sectors and markets. Diversification
is a strategy to encourage positive
and sustainable economic growth
and development.
Econ om ic gr ow t h is an
increase in the amount of goods
and services produced by a
population over a period of time.
Expen dit u r es includes goods
and services purchases, public
consumption, public investment,
and transfer payments. Transfer
payments include income transfers
(pensions, social benefits) and
capital transfer.
44
- Operating Expenditures
- Per son n el ser vices include
salaries and other
compensation (such as
salary increases, allowances,
honoraria) for permanent,
temporary, contractual, and
casual government
employees. It also includes
retirement benefits
- Goods & Ser vices include
supplies and materials,
transportation and travel,
utilities, and other
maintenance activities.
- Su bsidies an d
con t r ibu t ion s include
money paid by a
government to help
organizations, sectors or
industries reduce costs.
These help organizations
provide products or services
at lower prices to citizens.
- In t er est includes fees,
interest expenses, bank
charges, and other financial
charges.
 - Capit al Expen dit u r es includes
goods and services purchased
to increase government assets.
These include infrastructure,
vehicles, and investments in
capital stocks of government
corporations.
Expen dit u r e Ceilin g is the
allocation of fixed funding amounts
for fixed periods of time, usually
one year.
Fiscal policy is the use of
government spending and tax
policies to influence economic
conditions. Fiscal policy adjusts
demands for goods and services,
employment, inflation and
economic growth.
Pr oject s are carefully planned
and designed initiatives to achieve
government objectives.
Reven u e is money collected by
the government. It is an important
tool of the fiscal policy of the
government. Collected revenue
enables government to finance
spending to meet national goals.
The sources of finance used by the
central government include taxes
45
paid by the public or non tax
revenues as:
- Dir ect Taxes are paid directly to
government by individual and
organizational taxpayers. This
includes income tax,
corporation tax, and wealth tax.
- In dir ect Taxes are applied on
the manufacture or sale of
goods and services. This
includes sales tax, service tax,
and excise duty.
- Non Tax In st r u m en t s are
recurring income earned by
government from sources other
than taxes. This includes
royalties, dividend receipts, and
general retirement.
Social Pr ogr am s intend to
advance community conditions.
This includes social services such as
education, medical care and
housing.
46
 REPUBLIEK SURINAM E

+597 472610
info@finance.gov.sr
Tamarindestraat 3, Paramaribo, Suriname
South America
www.finance.gov.sr