Surplus utilization rooted in the Financial Supervision Act
ORANJESTAD - On August 20, 2025, the government defended the first 2025 budget amendment in parliament.
Aruba's budget, including AZV, SVb, ATA, Serlimar, SEPB, and UA, is legally required to achieve a financial result of at least 1% of the gross domestic product.
The 2025 budget amendment projects a surplus of 2.6%, equating to 187.2 million florin. Out of the total of 187 million florins, Aruba expects a financial balance of 87.5 million florins, which is an increase of 1.2%. The combined financial balance expected from AZV, SVb, ATA, Serlimar, SEPB, and UA amounts to 99.7 million florins.
The expenditure of the expected surplus in Aruba's budget is subject to the Financial Supervision Act. This surplus cannot be used directly. The law states that 1% must go to pay off debt. The extra surplus beyond the required 1 percent will be subject to the windfall policy (meevallersbeleid). This policy dictates that 50% of the additional surplus is allocated to debt repayment, while the remaining 50% is for investments aimed at stimulating the economy.
What does this mean for the expected surplus for 2025?
For Aruba's expected surplus of 87.5 million florins, 80.3 million florins will be used to pay off debt, while 7.2 million florins will be used for investments in the economy. It is what the law says. For entities in the collective sector, ATA retains a portion of the financial results, while the remainder is returned to the government coffers. For AZV and SVb, the result will be reserved. Currently, the law does not allow the use of SVb and AZV extra surplus.
Everyone must understand that the use of the surplus, in the context of the 2025 budget and beyond, is subject to the law. The surplus is not a sum of money that can be used without considering the legal framework and its impact on public finances.
