Cft: “Fragile budget recovery Curaçao in 2022 and 2023; expenditures have to be controlled”

As of the second half of 2021 the economy of Curaçao is showing considerable recovery. Curaçao should utilize this recovery period to get the budget structurally in order, thereby exercising control of the expenditures. The Board of financial supervision (Cft) has urged this in its recent talks with the Curaçao government. Curaçao is decreasing its multi-year budget deficits in part on account of the progress made in tax collection, but the challenges remain substantial. The significant inflation worldwide and continued disruptions in the supply chain could put pressure on the recovery. The process to bring government debt to an acceptable level remains a major challenge as well. In addition, reforms need to be executed in order to safeguard the sustainability of the health and social security systems for the future. In spite of the fact that Curaçao is realizing higher tax benefits, expenditure control and reforms therefore remain of great importance.