THE HAGUE – Curaçao’s economy continues to benefit from strong tourism growth, but the island’s financial watchdog says serious weaknesses remain in the government’s financial administration, tax collection and budget planning.
That warning comes from the latest half-year report of the College financieel toezicht (Cft), covering the second half of 2025, which has now been sent to the Dutch Parliament by State Secretary for Kingdom Relations Eric van der Burg.
According to the report, Curaçao recorded a provisional surplus of 238 million guilders on its ordinary budget through the third quarter of 2025 and is expected to close the year with a surplus of 75 million guilders, equivalent to about one percent of GDP. The Cft describes that as a positive sign of budgetary discipline and economic resilience, supported largely by tourism-driven growth.
But behind those figures, the watchdog says major structural problems remain unresolved.
The Cft says Curaçao’s financial management is still “not in order,” pointing to incomplete budget documentation, weak financial controls and the absence of an integrated and verified financial accountability system.
According to the report, this makes it difficult to confirm with certainty whether the country is fully complying with the legal requirement to maintain a balanced budget.
One of the strongest criticisms concerns Curaçao’s Tax Department.
Although tax revenues have risen steadily since 2021, the Cft says it remains deeply concerned about the functioning of the tax authority. A 2024 investigation by government auditor SOAB found unlawful preferential treatment and failures to comply with legal tax procedures.
The watchdog warns that such practices pose risks to tax morale and public finances.
Plans to reorganize and modernize the Tax Department are already advanced, but the Cft says it received no update on progress during the second half of 2025 despite repeated requests.
The report also points to delays in the government’s broader financial reform agenda, including the roadmap aimed at obtaining an unqualified audit opinion on Curaçao’s annual accounts by 2026.
That roadmap has now been revised after the government acknowledged that slow decision-making, limited administrative capacity and a lack of political priority caused significant delays.
The Cft says Curaçao plans to present a new action plan in early 2026.
State Secretary Van der Burg stressed that strong public finances remain essential for reliable public services and sustainable economic development across the Kingdom.
For Curaçao, the message from the watchdog is clear: tourism may be keeping the economy afloat, but lasting financial stability will depend on fixing the government’s own financial house.