WILLEMSTAD – The real government revenue at the end of January 2025 was significantly lower than the projected budget, particularly in social security contributions, according to MAN-PIN.
Total actual revenue from taxes, social security contributions, and other receipts amounted to NAf 236.3 million, compared to the budgeted NAf 256.2 million, reflecting a shortfall of NAf 20 million. This deficit is broken down as follows:
Tax revenue increased by NAf 4.6 million
Land lease income decreased by NAf 0.8 million
Social security contributions dropped by NAf 23.7 million
Under social security laws, the government is obligated to cover all social security deficits. However, the NAf 4.6 million increase in tax revenue is insufficient to offset the NAf 23.7 million shortfall in social security contributions.
MAN-PIN expressed deep concern over this drastic decline in social security contributions, especially considering that it is only the first month of 2025. Their primary concern is that these contributions are essential to guarantee basic social services, such as health insurance, pension payments for the elderly and widows (AOV/AWW), elderly care, and other social programs.
Additionally, the Social Security Bank (SVB) has warned in its latest report that by the end of 2027, the ‘schommelfonds’ (stabilization fund) will be depleted. This would mean that, beyond its fixed contribution, the government would have to provide additional financial support to the SVB, which would have to come from the general budget of Curaçao.
An additional contribution from the general budget could have severe consequences, as it might limit the government's ability to fund essential public services such as healthcare, education, and security.
While MAN-PIN does not want to cause panic, it does want to alert both the public and the government that instead of spending taxpayer money irresponsibly, efforts should be seriously focused on addressing the critical social security issues. "This is serious business!" the organization warned.
