WILLEMSTAD – The Curaçao government has increased its planned spending for 2027 by an estimated XCG 50 million compared with what it projected for the same year in the approved 2026 budget. The increase emerges from a comparison of the previous multi-year estimates with the latest advice from the Board of Financial Supervision (Cft) on the draft 2027 budget.
The 2026 budget already anticipated a substantial increase in government expenditure the following year. Under that projection, expenditures were expected to rise from approximately XCG 2.052 billion in 2026 to XCG 2.156 billion in 2027, an increase of about XCG 104 million.
However, in its latest assessment of the draft 2027 budget, the Cft states that government spending next year is now expected to increase by approximately XCG 154 million compared with 2026, representing growth of roughly eight percent.
This means that since the previous budget cycle, the government has added approximately XCG 50 million to its planned expenditure for 2027.
It is not yet publicly clear where the additional money will be spent. The complete draft 2027 budget and its accompanying financial explanation have not yet been published through the Curaçao Parliament. The Advisory Council has had the draft budget under consideration since July 22.
Part of the previously anticipated increase in spending was already explained in the 2026 budget. The multi-year projections included higher personnel costs, increased subsidies and transfers, greater social security expenditure and an additional reservation of approximately XCG 30 million related to the financial solution for insurer ENNIA.
The newly identified increase of approximately XCG 50 million comes on top of those previously projected expenditures.
The Cft has again warned the government about allowing structural expenditures to continue rising. According to the financial supervisor, higher recurring expenses make future budgets more vulnerable if economic growth slows or government revenues fall short of expectations.
Curaçao already has a relatively high tax and social premium burden, according to the Cft, limiting the government’s ability to absorb future financial setbacks simply by raising additional revenue.
The higher spending also comes as the government plans substantial new borrowing to finance investments. Approximately XCG 190 million in new loans is planned for 2027, although that amount was already included in the previous multi-year projections.
The government is also planning additional borrowing in subsequent years, increasing the importance of controlling recurring expenditure while managing Curaçao’s debt position.
A clearer picture of where the additional XCG 50 million will be spent, and how the government intends to finance its overall 2027 plans, is expected once the complete draft budget and its financial explanations are made public.