WILLEMSTAD – Curaçao is expected to close its 2024 budget year with a preliminary surplus of over 120 million guilders in its general service account, which covers the government's daily expenses. This comes from the fourth execution report, which has been reviewed by the College Financial Supervision (Cft).
After accounting for outstanding income and expenses, the country expects to end with a surplus of around 60 million guilders, which will be used to cover the deficit in the capital service, the budget allocated for investments in major projects such as construction or the purchase of equipment.
According to the Cft, Curaçao is still meeting the central budget standards set by the Kingdom Financial Supervision Act, although the final results will need to be verified by an accountant.
However, it is crucial for the expected surplus to materialize, as the capital service deficit is also estimated to reach 60 million guilders. Should Curaçao need to fulfill all its obligations, the deficit could rise to over 120 million guilders.
Budgetary Rights Under Scrutiny
The Cft has also pointed out that Curaçao has not yet submitted proposed budget amendments for 2023 and 2024 to the States (the local parliament), which undermines the legislative body’s right to approve or reject the government’s budget.
Budgetary rights refer to the parliament's authority to approve government expenditures and revenues. In Curaçao, this means that all government spending must be approved by the States before it can take place. Without this approval, the government is not permitted to spend money or collect taxes.
The Cft warns that the failure to present budget changes to the States effectively sidelines the parliament, which weakens democratic control over the country's finances.
Delays in Financial Reports and Accountability
Another concern highlighted by the Cft is the absence of approved annual financial reports since 2018. The States have not been able to grant discharge for the government’s financial management over the past five years because the financial statements have not been finalized. Without approved annual reports, the parliament cannot assess whether public funds have been properly spent, meaning the government has not officially been cleared of its financial responsibilities for those years.
The report also touches on the country's investments and loans. Curaçao invested over 70 million guilders in 2024, significantly less than the budgeted 130 million guilders. The government has stated that it does not plan to take on new loans and does not intend to use the Dutch loan facility in 2025.
Financial Management Reform Delays
The Cft also notes delays in the implementation of the Roadmap for Better Financial Management, with all eleven sub-projects facing or threatening to face delays. These reforms are essential to securing an unqualified audit opinion on the 2026 financial statements. The Cft has urged the Ministry of Finance to respond quickly to earlier recommendations and provide clarity on the feasibility of meeting these objectives.
Finally, the Cft highlighted an improvement plan for the Receiver's Office (the tax authority), which was developed in response to critical findings from the Government Auditors Bureau. Periodic reports on progress are now being issued, with a final assessment expected in the future.
In summary, while Curaçao is reporting a budget surplus for 2024, significant challenges remain, particularly regarding accountability, financial reporting, and the timely execution of planned reforms.
