THE HAGUE - According to the Financial Supervision Board (Cft), the government finances of Curacao are developing considerably more negatively than the forecasts that the government presented.
After implementing the announced measures to increase revenues and lower spending, the amended budget for this year shows a deficit of 46.6 million guilders. However, the Cft anticipates a much worse outcome: a gap of 11.6 million, a difference of no less than 65 million.
No urgency
The calculation will only vary further in the coming years; to a difference of 77.8 million in 2020, 112.2 million in 2021 and 147 million in 2022. These figures do not even include the mandatory deficit compensation. If that does happen, then according to the Cft, Curacao is heading for a deficit of 186.9 million in 2020.
The amended budget shows "too little evidence of urgency," the Institute said in a letter to Minister Kenneth Gijsbertha of Finance. The Cft believes that there is an insufficient balance between increasing the burden on citizens, companies and people on the one hand and reducing government spending and increasing efficiency on the other.
Unrest
It therefore calls for (even) more far-reaching measures such as raising the retirement age to 66 years. Without intervention, the care and social security provisions will become unaffordable in the near future. The Cft considers the lack of reforms irresponsible.
In order to force the Curacao government to adopt the recommendations, the Cft advised the Council of Ministers to give an instruction. The question is whether this is the result: an agreement is being worked on behind the scenes that gives the Rhuggenaath government the opportunity to reduce the deficits over a longer period of time. According to observers, The Hague also realizes that the measures proposed by the Cft can lead to major labor unrest.