WILLEMSTAD – The reform of financial management in Curaçao is at risk of further delays, according to the latest joint implementation report issued by Curaçao and the Netherlands on the progress of the Landspakket (national reform package). A crucial legislative amendment, which is expected to lay the foundation for improved financial oversight, is still pending parliamentary debate—halting other key reforms, including a streamlined subsidy process.
The report notes that the amendment to the National Ordinance on Financial Management was initially expected to be addressed earlier this year. However, due to “the large number of legislative proposals submitted to Parliament,” treatment of the bill is now not expected until the second half of 2025. As a result, Curaçao’s new subsidy regulations have been delayed, and anticipated improvements in execution cannot move forward.
Roadmap Program Struggles
The delay also affects other parts of the so-called roadmap program for achieving uniform and lawful financial management. Several key sub-projects—such as the digitization of payroll administration and improvement of internal control systems—are behind schedule. While initial plans called for completion in the first quarter of 2025, that timeline has already been abandoned. Authorities now consider year-end 2025 as the new target, though this would require accelerated execution.
The report highlights that across nearly every aspect of financial administration—including subsidies, tax revenue, and fixed assets—there has been no structural assurance of reliability and legality. Some progress has been made, such as with the guidelines for commitment management and updates to the subsidy management system, but even these areas have yet to complete audits or full implementation.
Delays in Quality Assurance Measures
A particularly critical component—the implementation of the three-lines-of-defense model for internal control—is also delayed. This structure, which introduces tiered levels of monitoring and accountability within government, is essential for long-term quality assurance. The blueprint and implementation plan are now expected in Q2 2025, rather than Q1. Full operational status has been pushed to late 2026.
The report stresses the urgent need for tighter control over planning and execution, noting that previous course corrections have failed to generate the necessary momentum. This also applies to improvements in the national budget cycle. A proposal to modernize the process, including the introduction of Policy-Based Budgeting—which directly links policy decisions to budget allocations—was only submitted to the Council of Ministers at the end of March, with full implementation slated for the end of this year.
The findings underscore the challenge Curaçao faces in modernizing its public finances and meeting reform benchmarks, which are seen as vital to long-term economic stability and good governance.
