WILLEMSTAD – Curaçao’s 2026 national budget formally complies with the standards of the Kingdom Financial Supervision Act, but remains vulnerable due to the increase in the General Old Age Pension (AOV) and continued uncertainty surrounding the Curaçao Medical Center (CMC). That is the conclusion of the College financieel toezicht Curaçao en Sint Maarten (Cft) in its advisory letter to Finance Minister Charles Cooper.
For 2026, Curaçao is projecting a surplus of 19 million guilders on the ordinary budget. This meets the central budgetary norm, and the multi-year outlook also shows surpluses in subsequent years. According to the Cft, the overall quality of the budget has improved, but significant risks remain.
AOV Increase Not Yet Included
As of January 1, 2026, the monthly AOV benefit has been raised to 1,000 guilders. In addition, AOV recipients will receive a one-time purchasing power compensation of 2,500 guilders. However, these measures have not yet been incorporated into the 2026 budget.
The Cft is requesting clarity on how these measures will be financed and what their structural impact will be on the national budget, the AOV fund and the fluctuation reserve. Without this information, the watchdog states that the budget cannot be considered complete.
Uncertainty Around CMC
The financial situation of the Curaçao Medical Center remains another major concern. While the budget outlines a proposed approach to address the hospital’s financial challenges, the Council of Ministers has not yet taken a formal decision on the chosen solution.
The Cft describes the pace of decision-making as worrying and urges the government to formalize its choices without delay, including reflecting the financial consequences in the budget.
Rising Expenditures Increase Risk
Total government expenditures are set to rise by 127 million guilders in 2026 compared to 2025, an increase of seven percent. According to the Cft, this structural rise in spending makes the budget more sensitive to economic setbacks, particularly as Curaçao’s economy is becoming increasingly dependent on tourism.
Although Curaçao technically meets the budgetary norm, the Cft emphasizes that key financial risks have not yet been fully accounted for. The watchdog has asked the government to indicate, no later than February 6, how it intends to process the recommendations through a budget amendment.
The advice underscores that compliance on paper does not automatically translate into financial resilience, especially while major policy decisions remain unresolved.