WILLEMSTAD – Curaçao's public finances continue to perform better than expected, with the country posting a preliminary budget surplus of 111 million guilders during the first quarter of 2026. However, the Board of Financial Supervision Curaçao and Sint Maarten (Cft) is warning that several critical reforms and financial policy decisions remain unresolved, creating uncertainty about the government's long-term fiscal outlook.
In a letter sent to Finance Minister Charles Cooper, the Dutch Kingdom financial watchdog concluded that Curaçao is currently complying with the central budget norm established under the Kingdom Financial Supervision Act. The surplus follows another positive result in 2025, when the country is now expected to finish with a surplus of 107 million guilders, significantly higher than the previously projected 75 million guilders.
The strong performance was driven largely by higher-than-expected tax revenues. During the first three months of 2026, Curaçao collected 557 million guilders in taxes, 38 million guilders above budget projections. Corporate profit taxes, sales taxes, and motor vehicle taxes all performed better than expected. Total government revenues reached 590 million guilders during the quarter.
Despite these positive figures, the Cft expressed concern that the government failed to submit a requested draft budget amendment together with the first execution report. According to the watchdog, the missing amendment makes it impossible to assess progress on several major policy issues that could significantly affect government finances in the coming years.
Among the unresolved matters is the financial future of Curaçao Medical Center (CMC), which continues to be one of the country's most sensitive financial challenges. The Cft noted that there is still no complete picture of how the government intends to address the hospital's financial problems. Another outstanding issue is the formal determination of the country's collective sector, a legal requirement that should have been completed years ago.
The watchdog is also still waiting for a roadmap explaining how Curaçao intends to lower its debt ratio over the coming years. Earlier requests for an analysis of declining tax compliance among employers and taxpayers have likewise not yet been answered. The Cft emphasized that these matters have become even more urgent given growing geopolitical instability and the potential impact on economic growth and public finances.
Another area of concern involves tax collection and enforcement. The Cft noted that previous concerns about declining compliance with payroll tax obligations have not yet been adequately addressed. It requested a detailed analysis in the next execution report covering compliance levels across various taxes and social insurance premiums.
The report also highlighted a lack of transparency regarding revenue generated from Curaçao's rapidly expanding gaming sector. Fees paid by online gambling operators and land-based casinos are reported under "other revenues," but the execution report does not provide sufficient details to track the actual income generated by the industry. The Cft said discussions are ongoing between the government and the Curaçao Gaming Authority to improve reporting.
While praising the government's improved reporting and openness regarding weaknesses in financial administration, the Cft stressed that positive budget results alone are not enough. According to the watchdog, Curaçao must now demonstrate progress in resolving long-standing structural issues, strengthening financial management, and completing several delayed reforms that remain critical for the country's future fiscal stability.