WILLEMSTAD – Curaçao spent XCG 235.9 million on subsidies and transfers during the first six months of 2026, approximately XCG 22.1 million more than projected, largely because of the one-time Bashi bonus that was not included in the original forecast.
According to the government’s June Financial Management Report, subsidies and transfers had been projected at XCG 213.8 million through June.
The higher expenditure is primarily attributed to payment of the one-time 2026 Bashi premium to personnel employed by subsidized school boards and certain government institutions and foundations. The expenditure had not been incorporated into the original forecast.
Based on current developments, the Ministry of Finance now expects subsidies and transfers to reach approximately XCG 463.3 million for the entire year.
That would be approximately ANG 4.1 million above the annual budget and forecast of XCG 459.2 million.
The government says it will closely monitor the spending during the remainder of 2026 to determine whether the difference is mainly the result of one-time payments and timing issues or represents a structural increase in expenditure.
If the projected overspending materializes, budgetary measures will have to be taken and, where necessary, formalized through a budget amendment.
Higher-than-expected tax revenues currently provide sufficient room at the overall budget level to absorb a possible overspending on subsidies. However, the Ministry of Finance stresses that this does not eliminate the requirement to separately control spending within the authorized subsidies and transfers budget.
The report also reveals broader concerns surrounding the government’s management of subsidies. The financial-management reform program identifies uncertainty regarding the accuracy and lawfulness of subsidies and transfers as one of the areas requiring attention.
A corrective exercise involving subsidies and transfers granted in previous years is underway and is expected to be completed before the end of 2026. The government is also strengthening the subsidy process within the Ministry of Health, Environment and Nature and has begun implementing an application to support the subsidy process.