Aruba’s Financial Supervision and Budget Compliance Reviewed by CAft in 2024

The College of Financial Supervision (CAft) has reviewed Aruba’s 2024 budget, highlighting key areas of compliance and providing recommendations for improving financial supervision and governance.

Overview of Aruba’s Budget Modifications in 2024

On July 10, 2024, the College of Financial Supervision of Aruba (CAft) received the first budget modification (begrotingswijziging, BW) for 2024. CAft’s analysis revealed a surplus of 211 million florins, equating to 2.9% of Aruba’s GDP. This surplus meets the financial balance standard set for the collective sector, reinforcing the parliamentary budgetary authority.

Key Findings from CAft on Budget Surplus

However, despite the surplus, CAft raised concerns about the BW’s compliance with LAft (the Financial Supervision Act). Key issues include the incomplete application of budgetary norms, lack of detailed public sector debt development, and insufficient explanations on the use of surpluses for debt reduction. Furthermore, CAft noted a 13 million florin increase in government personnel costs, partially offset within the spending framework but still requiring further coverage.

Compliance with LAft Standards

CAft urged Aruba to adhere to LAft’s budgetary rules and recommended reallocating unexpected surpluses to reduce public debt. The organization also called for strengthened documentation on personnel expenses to ensure compliance with LAft standards and emphasized the importance of addressing the total collective sector debt.

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