WILLEMSTAD – The Curaçao government is undertaking a broad reform of its subsidy system, combining legislative changes with a cleanup of past subsidy files, tighter internal controls and the introduction of a digital system to better manage applications, awards and accountability.
According to the Landspakket implementation process, the new subsidy decree cannot yet take effect because the National Ordinance on Financial Management must first be amended. That legislative process has been delayed, with the latest implementation report expecting the amendment to be adopted during the third quarter of 2026.
At the same time, the government is carrying out a remediation effort involving subsidies and transfers granted in previous years. The objective is to bring the financial administration up to standard and establish more clearly whether past expenditures were lawful and properly verifiable.
Once that work is completed, the government intends to make structural improvements to subsidy procedures, information systems and internal controls. The end of 2026 has been established as a milestone for the remediation effort.
A key part of the reform is the introduction of a digital subsidy support system. Implementation was previously delayed, but the approach has now been approved. The system will first be introduced at the Ministry of Social Development, Labor and Welfare (SOAW), with the possibility of expanding it to other ministries.
The government aims to have the digital system operational by the end of 2026.
SOAW has already established the basic structure of its subsidy unit, policies, procedures and program requirements. These components are being further developed and refined during 2026.
The objective is to ensure that subsidies are awarded more efficiently and effectively while improving the government's ability to determine whether public funds are ultimately used for their intended purposes.
However, the overall reform will not be completed this year. Part of the structural redesign of Curaçao's subsidy cycle is expected to continue through the end of 2027, with SOAW serving as a model for other ministries.
The measures form part of the broader effort to improve Curaçao's financial management. Previous steps under the Landspakket included training in subsidy management and the development of procedures and guidelines.
The current phase goes further by targeting the entire subsidy chain, from the initial application and assessment to approval, payment and final accountability.