WILLEMSTAD – The Board for Financial Supervision (Cft) has warned that Curaçao is once again budgeting significantly more investment projects than it is likely able to execute, raising concerns about the government's investment planning and borrowing strategy.
In its review of Curaçao's first execution report for 2026, the Cft noted that the government has allocated a total of NAf. 199 million for investments this year. However, during the first quarter, only NAf. 6 million was actually spent on investment projects.
The financial watchdog described the gap between planned and actual spending as concerning, particularly because Curaçao intends to borrow an additional NAf. 186 million from the Netherlands to finance those investments.
According to the Cft, the government should critically reassess which projects can realistically be carried out during 2026 and adjust the investment budget accordingly.
The report shows that by the end of March, Curaçao had outstanding investment commitments totaling approximately NAf. 41 million. However, the execution report does not specify which projects are included in that amount.
The Cft pointed out that this is not the first time the government has struggled to realize planned investments.
In 2025, Curaçao ultimately invested approximately NAf. 100 million despite having budgeted more than NAf. 204 million for investment projects. As a result, only about half of the planned investments were actually completed.
The watchdog has repeatedly emphasized that realistic budgeting is essential to maintaining sound public finances and ensuring that borrowed funds are linked to projects that can actually be executed.
Despite concerns about investment execution, Curaçao's financial position showed positive results during the first quarter of the year.
Tax Revenues Push Government to NAf. 111 Million Surplus
The Cft reported that Curaçao recorded a provisional surplus of NAf. 111 million on its ordinary budget during the first three months of 2026.
Government revenues exceeded expectations, largely due to stronger-than-anticipated tax collections.
Between January and March, the country generated total revenues of NAf. 590 million, including NAf. 557 million in tax income. That figure was NAf. 38 million higher than projected for the period.
The strongest performers were profit tax, sales tax (OB), and motor vehicle tax revenues, all of which exceeded budget forecasts.
The results continue a trend of stronger government revenues in recent years, driven by economic growth, improved tax compliance, and increased business activity.
However, while the budget surplus provides a positive signal for government finances, the Cft stressed that sustainable financial management requires not only strong revenues but also realistic planning and execution of public investments.
National Debt Continues to Rise
The report also highlighted a continued increase in Curaçao's national debt.
According to the Cft, total government debt rose from NAf. 4.092 billion at the end of 2025 to NAf. 4.325 billion by the end of March 2026.
As a result, Curaçao's debt-to-GDP ratio increased to 61 percent.
While the debt level remains manageable by international standards, the increase underscores the importance of ensuring that new borrowing is linked to investments that can be successfully implemented and that contribute to economic growth.
The Cft is expected to continue monitoring both the country's investment execution and debt development closely throughout the year as Curaçao seeks to balance economic development objectives with fiscal discipline.