Fiscal Deficit Increases in Costa Rica
The finances of the Central Government of Costa Rica continued to show a marked deterioration. Up to and including April, the financial deficit stood at $222 million.
Monday, May 18, 2009
In the first quarter of this year, the results of the accounts of the Central Government showed a decline of 8.5% in revenue over the same period in 2008. Revenue from income taxes showed an inter-annual decrease of 9.8% and customs showed a contraction of 21.4%.
The fiscal deficit is pushing interest rates up, and the Treasury Minister announced a resolution to create a new tax that will generate additional income.
The 10% increase in revenues will offset the 9.5% increase in central government spending, leaving the fiscal deficit at 3.5% of GDP, slightly below the October 2012 cumulative.
Costa Rica could have a greater fiscal deficit than the 4.8% estimated by the Central Bank for this year, reaching 5.1% of GDP.
In the first 7 months of 2012 revenue increased by 11.3%, but government spending continues to increase at a rate of 9.6% growth, just below the 10.4% recorded in the same period in 2011.
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