Aruba sharpens support, investment and 2027 budget plans

ORANJESTAD — Aruba is working on a series of changes aimed at strengthening public finances, improving budget planning and targeting support more precisely at households that need it most. These were among the main issues discussed in a meeting between Finance, Economic Affairs and Primary Sector Minister Geoffrey Wever and IMF Mission Chief for Aruba Marco Arena.

One concrete initiative is the development of a poverty definition and poverty map to better identify which households need assistance when the cost of living rises. The government considers this increasingly important after international shocks and higher fuel prices again highlighted Aruba’s vulnerability to imported inflation. The intended approach is to make future support more targeted rather than broad-based, while preserving the country’s financial stability.

Another change concerns the way the budget is prepared. Aruba introduced policy-based budgeting with the 2026 budget and is expanding that approach for 2027, with the aim of linking public spending more directly to policy priorities, identifying fiscal risks earlier and improving transparency.

There are also plans to develop a stronger government revenue-forecasting model with technical assistance from CARTAC. The objective is to improve the quality of revenue projections and provide a more reliable basis for budgeting and investment planning.

Public investment was another central issue. The government wants to address years of insufficient investment in infrastructure, schools and other public assets, including through an investment fund and a more structured portfolio of projects.

The significance therefore goes beyond another meeting with the IMF: Aruba is trying to combine public investment and purchasing-power protection with more precise budgeting and sufficient financial room to absorb future shocks.