WILLEMSTAD - Curaçao’s fiscal position improved in 2018 following expenditure containment measures, but still fell short of meeting the fiscal rule.
Zero indexation and tighter transfers reduced the current fiscal deficit in 2018, but still triggered an Instruction from the Kingdom in 2019 as it fell short of the balanced current account rule. In 2019, the government also signed the Growth Accord with the Netherlands setting out revenue and expenditure measures, implemented short-term revenue measures and introduced a 3:1 attrition rule for central government employment.
These measures and a one-off tax windfall from the tax sharing system with the Netherlands led to a fiscal current account surplus in the first 9 months of 2019.