WILLEMSTAD - Despite generating higher tax revenues in the first half of 2024 than initially budgeted, Curaçao continues to face financial concerns, according to the Financial Supervision Board (Cft).
In its response to the second-quarter execution report, the Cft warns that anticipated revenue from licensing fees for gambling operators may not be fully realized and that no solution has yet been found for the financial issues at the Curaçao Medical Center (CMC). The Cft insists that these issues need to be addressed in the proposed budget amendment for 2024.
Revenues
Curaçao reported a preliminary surplus of 106 million guilders in the ordinary service for the second quarter of 2024, primarily due to higher tax revenues. Total revenues amounted to 998 million guilders, which is 107 million more than in the same period in 2023.
The increased revenues are attributed to rises in value-added tax, import duties, waste tax, and income tax, which led to an increase in the 2024 tax estimate from eleven million to nearly 1.7 billion guilders.
Gambling Licenses
In the second quarter of 2024, Curaçao realized 12 million guilders less in 'other revenues' than budgeted, mainly due to lower income from 'other licenses and registration fees,' including gambling licenses and casino operation permits.
These revenues are about 19 million guilders behind the budget. Due to a lack of detailed breakdowns in the execution report, the Cft cannot assess which licensing fees are falling short.
The Cft urges Curaçao to provide an explanation for the realization of these revenues and, if necessary, to adjust the expected revenues for 2024 downward.
CMC
The Cft also notes that Curaçao has yet to make provisions for the outstanding loan to the Curaçao Medical Center (CMC), as previously advised. The approach to addressing the structural operational deficit of the CMC has largely not been incorporated into the 2024 budget amendment.
Although Curaçao provided an advance for care for the uninsured and paid part of the transition costs from 2018 and 2019 in the second quarter, further development of the proposed solution is lacking. The full financial processing of this issue is likely to result in a significant increase in expenses.