WILLEMSTAD – Curaçao’s government recorded a provisional XCG 188.6 million surplus on its ordinary budget through June 2026, supported by tax revenues that significantly exceeded expectations during the first half of the year.
The Financial Management Report for June shows that the ordinary budget performed XCG 64.6 million better than projected through the end of the second quarter. After taking into account an XCG 18 million deficit on the capital budget, the government’s overall realized budget balance stood at a positive XCG 170.6 million.
The improvement was driven largely by tax collections. According to the government’s second-quarter implementation report, tax revenues during the first six months were approximately XCG 93.4 million above the amount forecast for the period. Collections were also about XCG 98 million higher than during the first six months of 2025.
The Ministry of Finance attributes the stronger collections to the high price level, increased economic activity driven by tourism and continuing efforts to improve tax compliance.
The detailed financial figures show that the government collected approximately XCG 1.0465 billion in taxes through June, XCG 83.2 million more than projected in the Financial Management Report. Among the largest positive differences were profit tax at XCG 22.2 million above forecast, turnover tax at XCG 18.9 million, property tax at XCG 13.8 million, motor vehicle tax at XCG 13.1 million and wage tax at XCG 10.8 million above expectations.
The government says turnover tax revenues in particular appear to be structurally stronger than budgeted. The report states that higher turnover tax revenues should be taken into account when preparing the 2027 budget cycle, based on continued economic growth.
Despite the strong first-half result, the Ministry of Finance cautions against treating the entire surplus as permanent. At the end of June, the government had already entered into XCG 243.3 million in obligations that had not yet materialized as expenses.
The current annual forecast calls for the ordinary budget to end 2026 with a surplus of XCG 19 million. The government notes that this forecast remains subject to revision as new information becomes available.