While the Government of Aruba saw its income grow by 2.3% in 2021 to 1.09 billion florins, this total was still 22.5% less than the 1.40 billion florins received in 2020.
According to the Central Bank of Aruba
During calendar year 2021 the Government’s total income grew by 2.3%, that is by 24.5 million florins, from 1.062 billion florins received in 2020 to 1.087 billion florins in 2021. The 1.087 billion florins however was 22.5% less than the 1.402 billion florins received in 2019.
Total Income: January – December 2021
The main contributors to the change in revenue in 2021 were: -
Please note the 198 million florins received in income in May 2019 was exceptional and largely driven by a contribution of 43.6 million in non-tax revenue (dividends) which was not repeated in subsequent years.
Please note these numbers are preliminary and subject to change.
As reported by the Central Bank of Aruba in its December 2021 Monthly Tables report.
Data for government expenditures are only available for the first three quarters of 2021.
Government expenditures fell by 4.4% in the first three quarters of 2021 compared with the same nine months of 2020, falling by 56.3 million florins from 1.268 billion florins in 2020 to 1.212 billion florins in 2021.
However, Government expenditures were 14.6% higher in the first three quarters of 2021 compared with the same nine months of 2019.
Wage related expenditures fell by 3.8% in the first nine months of 2021, falling by 16.5 million florins from 431.2 million florins in 2020 to 414.7 million florins in the same nine months of 2021. Wage related expenditures in the first nine months of 2021 were 13.2% less than the amount paid out in the same nine months of 2019. Wage related expenditures comprised 34.0% of government expenditures in the first nine months of 2020 growing to 34.2% in 2021.
The increase in Government expenditures and decline in revenues resulted in a substantial increase in the Government’s financial deficit in the first nine months of 2021 with the cumulative deficit growing to 446.0 million florins.
The deficit was addressed by increased borrowing, with the national debt growing by 9.6% (493.5 million florins) in the first ni1ne months of 2021.
The Government’s total debt increased by 1.32 billion florins (30.6%) between December 2019 and September 2021.
For more details go to the Central Bank’s Government Finance Statistical News Releases for the Third Quarter of 2021
Jim Hepple is an Assistant Professor at the University of Aruba and is Managing Director of Tourism Analytics.