CAft: Diligent implementation of protocol is necessary for sustainable public finances

A protocol between Aruba and the Netherlands was agreed upon on November 22nd, 2018, which is directed towards sustainable public finances. It is understood that as soon as possible a surplus of at least 1% of GDP will be achieved on the budget. This should lead to a substantial reduction in the debt ratio, which at presents amounts to almost 90% of GDP. Windfalls will have to be used in favor of the deficit reduction in the coming years. The reorganization of public finances must be tackled by means of a significant reduction of government expenditure. From 2019 onwards, Aruba will nominally decrease the personnel costs. In doing so, it is important to modernize the tax system with determination. This in turn will also stimulate the economy.