WILLEMSTAD – Curaçao is making progress toward financial stability, but major structural challenges—especially in healthcare, tax administration, and budget execution—remain unresolved. That is the conclusion of the College of Financial Supervision (CFT) in its latest semi-annual report covering the second half of 2024.
The report, presented in March 2025, evaluates the financial management of the countries and public entities within the Kingdom, including Curaçao. While the overall economic outlook is positive and government revenues are rising, CFT flags several areas of concern that threaten to undermine long-term sustainability.
Healthcare Remains a Major Financial Risk
One of the most pressing issues is the ongoing financial instability of the Curaçao Medical Center (CMC). While the government introduced a plan to resolve the hospital’s precarious situation, it failed to integrate the proposed solution into the 2024 budget. Only in the finalized 2025 budget were additional funds allocated to the CMC—something CAft considers a crucial step but not a comprehensive fix.
In 2024 alone, Curaçao contributed ANG 316 million to healthcare and social security funds. These contributions are displacing other budgetary priorities and must be covered even when deficits arise. CFT has long advocated for systemic reforms in healthcare and social security, yet little progress was made in the latter half of 2024.
Tax Revenues Up, But Concerns Linger
On a more positive note, tax and premium revenues have continued their upward trend, surpassing projections by nearly ANG 100 million in 2024. This growth is credited to compliance measures implemented by the Ministry of Finance. However, a troubling audit earlier in the year revealed unauthorized preferential treatment within the Tax Office and non-compliance with legal standards.
Plans to reform and modernize the Tax Office are in motion, and CAft urges the government to treat this as a top priority to ensure continued revenue gains and restore integrity to the tax system.
Weak Budget Execution and Reporting
CFT also expressed concern over the poor quality of Curaçao’s budget execution reports. These documents often lacked adequate explanations, and information requests were only partially addressed. The delays and gaps signal that the country’s financial management infrastructure needs urgent improvement.
Curaçao has been working toward achieving a positive auditor’s opinion on its annual accounts, which would mark a milestone in fiscal transparency. However, delays in this process have prompted CFT to call for renewed focus and urgency.
Looking Ahead
While Curaçao’s 2025 draft budget projects a multi-year surplus, risks remain. Key revenue sources, such as licensing fees from the gaming sector, are underperforming, and critical reforms—particularly in healthcare and social security—are lagging. CFT will continue to monitor these developments closely.
The report concludes that good financial governance is essential for creating fiscal resilience and sustainable prosperity across the Kingdom. For Curaçao, timely and effective action is needed to turn positive economic momentum into long-term fiscal health.
