WILLEMSTAD - The government debt of Curaçao amounted to more than four billion guilders at the end of 2022. That is 82 percent of what all residents of Curaçao and companies on the island earn together in a year. This is reported by the Board of Financial Supervision (CFT).
The Curaçao debt ratio shows a slightly decreasing trend, mainly driven by the growth of the gross national product after the corona years.
According to the Board, citizens and companies in Curaçao earned more than 5.2 billion guilders last year. That figure comes from the International Monetary Fund.
The government of Curaçao realized 1,715 million in income up to and including the fourth quarter of last year. That is 57 million guilders more than budgeted, and 91 million guilders more than in the pre-corona year 2019.
According to the CFT, this higher realization is explained by higher tax revenues, higher contributions from the Netherlands and higher revenues from license fees (permits, leasehold, etc.).
According to the Board, the measures taken by Curaçao to structurally increase tax compliance, together with the economic recovery and inflation, led to a significant increase in tax revenues in 2022.
These amounted to 1,545 million in 2022, which is 48 million guilders more than budgeted and even 188 million more than expected based on the adopted budget for 2022, according to the CFT.
In particular, revenues from sales tax and import duties appear to be at a structurally higher level. CFT chairman Lidewijde Ongering believes that Curaçao should budget that income better. She says it is an underestimation. She therefore underlines the need to adjust the tax estimate for 2023 and beyond.