WILLEMSTAD - Curaçao's 2022 budget does not meet the standards set in the Financial Supervision Act. This is apparent from a letter from the chairman of the Board of Financial Supervision (CFT) Raymond Gradus.

The budget shows a deficit of 162 million guilders. The multi-year estimate shows a deficit for 2023 of 30 million guilders.

Deviations from the standards are allowed due to Covid-19, but this must be motivated. Minister of FInance Javier Silvania has failed to do so. In addition, not all expected expenses and receipts are included. Curaçao is achieving good results in increasing tax compliance. But Silvania has to adjust the budgeted tax benefits and use the most recent nominal growth estimate for indirect taxes.

The CFT notes in this regard that these estimates were drawn up at a time of great uncertainty and is concerned about the management of expenses, in particular personnel expenses and the item goods and services.

According to the CFT, the announced decrease in personnel costs is not substantiated. In the advice accompanying the adopted budget, the regulator asked Curaçao to identify options for reducing the item goods and services in the short term, with realization in 2019 serving as the starting point.