The Ministry of Finance: The Backbone of Curaçao
January 30, 2025
The Ministry of Finance in Curaçao is a cornerstone of governance and economic management. As one of the most pivotal portfolios after General Affairs, its responsibilities extend far beyond balancing the books—it dictates the financial health and future of the island.
In alignment with Curaçao’s overarching, the Ministry of Finance seeks to foster good governance, a high quality of life, and sustainable socioeconomic development. Its mission is clear: maintain a sound financial administration, uphold transparency, and implement responsible fiscal policies that align with the nation’s long-term goals.
Functioning as Curaçao’s "support staff," the Ministry plays a leading role in financial oversight and coordination. It oversees essential departments like tax collection, budget preparation, debt management, and financial administration. These units collectively ensure that the island’s financial machinery operates efficiently while holding other ministries accountable for their spending.
Since the 1980s, Curaçao has been on a quest to refine its financial administration. The golden era of offshore revenue once allowed financial leniency, but economic downturns forced the government to adopt a stricter approach. Significant milestones include:
• 2010 Debt Relief: The dissolution of the Netherlands Antilles led to a monumental 3 billion ANG debt relief, giving Curaçao a clean financial slate.
• Clearing Backlogs: Over a decade’s overdue annual financial reports were addressed, signifying progress in fiscal accountability.
Despite these successes, challenges persist. The country has yet to produce an approved annual financial statement, reflecting ongoing inefficiencies in financial governance.
The Minister of Finance in Curaçao has forgiven 3 billion guilders in overdue taxes accumulated up to 2017. However, it remains unclear whether this decision was carried out following proper procedures, raising questions about transparency and the potential impact on tax compliance and public trust.
We have seen increased tax compliance and boosted government revenues in recent years. However, this extra income has been channeled into politically motivated subsidies, particularly during elections. Long-discussed reforms—such as simplifying the tax system or implementing real estate tax (OZB) to ease the burden on citizens—remain stalled.
Worse, Curaçao’s tax system remains one of the most complex and burdensome globally. It disproportionately affects the less educated majority, with even academics struggling to navigate the system. This has exacerbated inequality, as the fiscal policy that should alleviate economic disparities often widens them.
The Ministry’s financial policies are meant to serve as a tool for national development. However, structural improvements for citizens remain elusive. For instance, the approved OZB tax—which could provide relief and foster economic equity—has yet to be implemented. Meanwhile, the collective tax burden remains among the highest in the world, further straining household incomes.
The lack of structural reforms to shift from direct to indirect taxation adds another layer of complexity. In a nation where 50% of the population lacks higher education, this system remains inaccessible and counterproductive, failing to meet the needs of its people.
While Curaçao’s vision is ambitious, the Ministry of Finance must confront its structural inefficiencies and commit to bold reforms. Transparency, accountability, and equity must become the cornerstone of its fiscal policies.
Key actions include:
• Implement long-delayed reforms like the OZB tax to provide sustainable relief.
• Simplifying the tax system to improve accessibility for all citizens.
• Allocating resources more effectively to prioritize structural improvements over short-term political gains.
The Ministry of Finance has the tools and talent to drive transformative change, but time is running out to meet the nation’s ambitions. Without immediate reforms and greater transparency, the vision of a prosperous and equitable Curaçao may remain just that—a vision. Now is the moment to turn ambition into action.
What steps should the Ministry take to bridge the gap between its vision and reality? Join the conversation below!
Miguel Goede
Comments