Costa Rica Fiscal Deficit Would Reach 10% in 2016

Costa Rica forecasts a 10% deficit in 2016 - more than $ 4.000 million – if the current trend continues without a reform.

Wednesday, February 2, 2011

As noted by Aldesa, the central government deficit amounted to almost $ 1.970 million. The shortfall means 5.3% of the national GDP and a growth of 73% over the total deficit of 2009, according to preliminary data from the Ministry of Finance.

What worries most is that the primary deficit (revenue shortfall on current expenditure excluding interest expenses) was $ 1.180 million. With 178% growth over the 2009 primary deficit, the current account deficit is higher than the total 2009 deficit, which was $ 1.140 million.

In a statement, the Ministry of Finance projects this year a fiscal deficit of 5.5% of GDP and adds the urgency of a fiscal reform in order to increase revenue, in the framework of a National Fiscal Sustainability program characterized by spending responsibility, solidarity and justice in tax collection. It projects a deficit of 10% by 2016 if the trend continues and in the absence of a fiscal reform, equivalent to more than $ 4.000 million.

More on this topic

Costa Rica: Fiscal Figures - September 2016

October 2016

Although the growth rate of government expenditure has slowed, it is above inflation, while rising incomes have allowed for a reduction of the fiscal deficit compared to last year.

From a statement issued by the Ministry of Finance:

A reduction of ¢168,742 million in the financial deficit (revenues minus expenses), and a difference of seven percentage points between increased income and expenses, are the fiscal figures for the Central Government recorded with just three months to go until the end of the year.

Fiscal Deficit Continues to Grow in Costa Rica

August 2011

In July, the difference between total revenue and expenditure was $87 million. The deficit does not include interest expenses, which amount to $527 million a year, 17.7% more than recorded in July 2010.

A press release by ALDESA reads:

“The July figures for revenues and expenditures by the Central Government are not very encouraging and continue to show the existence of harmful primary deficit.

Fiscal Deficit Continues to Increase in Costa Rica

May 2011

The fiscal deficit increased by 26.5% in the first 4 months of the year and has reached $733.3 million.

The amount is equivalent to 1.8% of Gross Domestic Product (GDP). In the same period in 2010, the amount was $579.8 million.

"We are seeing a larger financial deficit than the previous year in terms of GDP, which is consistent with the current projection that the deficit in 2011 would exceed 5% of GDP, " said the Finance Minister in office, Randall Garcia in an article publishes by ADN.es, "He reiterated the need for the country to adopt a tax reform ..."

Costa Rica: Public Spending Up 18%, Revenue 5%

June 2010

In the first five months of 2010, the fiscal deficit was $670 million, 86% more than the same period of 2009.

An article in Nacion.com notes that “the deficit accounted for 1.93% of the country’s production. The Treasury expects the deficit to represent 4.8% of the GDP by the end of the year”.

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