WILLEMSTAD – Curaçao’s government finances have performed significantly better than expected in the first half of 2025. The ordinary service budget, essentially the country’s operating account, closed the first six months with a provisional surplus of 29.6 million guilders—far above the initial forecast of just 3.5 million. 

The figures come from the Ministry of Finance’s latest Financial Management and Implementation Report for the second quarter of 2025, released this week. The positive deviation of 26.1 million guilders indicates that revenues and expenditures have so far turned out more favorable than projected. For the full year, the government is now anticipating a surplus of 62.2 million guilders. 

Personnel costs higher, but within limits 

Personnel-related expenses reached 251.4 million guilders during the first half of the year, about 7 million higher than budgeted. This was mainly due to the one-time “Bashí bonus” paid in January and the 3% allowance for civil servants who had reached the ceiling of their salary scale. While these costs were initially assigned to another budget line, they were ultimately covered within the available budget. 

Looking ahead, personnel expenses for the full year are projected to total around 475 million guilders. That is roughly 33 million less than the budgeted 505.8 million, despite expected increases tied to filling 244 vacancies and the addition of new positions linked to the landspakket reforms. 

Lower spending on interest and depreciation 

The category of depreciation and interest payments totaled 67.6 million guilders in the first half, which was 11.1 million below expectations. This underspending was mainly due to delays in registering investments from 2024 and an overestimation of interest costs on domestic loans earlier in the year. 

Subsidies exceed projections 

The largest budgetary overrun occurred in subsidies and transfers. Actual spending reached 226.5 million guilders, compared to a budget of 178 million—a difference of 48.5 million. This was driven by the extension of the Bashí bonus to nonprofit and public institutions, as well as higher subsidy payouts than in previous years. 

Outlook 

Despite pressures on certain expenditure categories, the overall picture for 2025 remains positive. The government expects that higher revenues and controlled costs in other areas will allow Curaçao to finish the year with a healthy surplus, bolstering confidence in the country’s fiscal position.