Presentation of the purchasing power model
ORANJESTAD - On April 23, 2024, the Economic Bureau Amsterdam ("EBA"), at the request of Minister of Economic Affairs, Communication, and Sustainable Development Geoffrey Wever, gave a presentation on the "purchasing power model" to government departments and other stakeholders.
The purchasing power model enables the calculation of the impact of policy measures on the purchasing power of 32 different types of households. The Economic Bureau Amsterdam has collected and processed data received from government agencies. The model includes various rates for income tax and tax exemptions, child deductions, contributions for AOV-AWW-AZV for employees and employers, AOV-AWW-AZV benefits, social assistance benefits, school contributions, AOV and AWW pension amounts, minimum wages, and inflation.
After starting the process of developing the purchasing power model in January 2024 and presenting it to the Aruban parliament and the council of ministers, the Economic Bureau Amsterdam presented the purchasing power model and its use to the Ministry of Finance (DirFin), the Tax Department (DIMP), the Central Bureau of Statistics (CBS), the Department of Labor and Research (DAO), the Social Insurance Bank (SVB), the General Health Insurance (AZV), the Social and Economic Council (SER), the Central Bank of Aruba (CBA), the Aruba Tourism Authority (ATA), and the General Pension Fund Aruba (APFA).
Purchasing power and its calculation are significant topics, so the calculations in the purchasing power model must be based on concrete and relevant data to ensure that the results reflect the current situation.
Minister Geoffrey Wever thanked the EBA and DirFin, DIMP, CBS, DAO, SVB, AZV, SER, CBA, ATA, and APFA for their valuable contribution to the developing process of the purchasing power model.