The 2017 budget drawn up by the government of Costa Rica is the result of an arithmetic exercise, where the political will of the Solis administration has barely reduced maintenance and has increased privileges in the dominant state corporations.
Scandalous could be the best word to describe the magnitude of the increase of 12% which the Solis Rivera administration has made in the 2017 public budget.The 12% increase not only far exceeds the projected inflation for this year, but is disproportionate and far from reality, considering the serious and urgent fiscal problem facing the country.
A year after the announcement, the project to establish a marine cargo ferry between El Salvador and Costa Rica remains on paper.
Although it had been announced that the service would begin in late July 2016, it seems that the idea of a ferry transporting goods between the ports of Costa Rica and El Salvador at a base cost of $800 will not happen, at least for now.
Transparency in governance and better use of productive resources in an economy are not achieved by appealing to good personal intentions, but by observing basic principles of management.
The government's candidate for the office of Controller General of Public Services sees "no inconsistency" in serving in this position, while at the same time being on sabbatical leave from a company which is a provider of those services.
The bridge building project which has been on paper since 2005 has been resurrected, with the announcement that the documents needed to tender the construction will be ready in March and the works will start in June.
Eleven years and half a dozen Panamanian and Costa Rican presidents have tried to put out to tender the construction of the bridge over the Sixaola river on the border between Costa Rica and Panama. Extreme bureaucracy, unenforceability and unfulfilled political promises surrounded the project which now has a new contract announcement.
The organization has once again supported the initiative that the Costa Rican government has control over the register of shareholders of companies classified as large taxpayers.
"The state must have in its hands information on the shareholders of companies and where dividends go to. In a democracy like this it is very difficult to understand how, who and why people can oppose the state having that information, " said the secretary general of the Organisation for Economic Co-operation and Development (OECD) Angel Gurria to Nacion.com.
The Chinese government has announced that it will not buy bonds worth $1 billion offered by Costa Rica, seriously delimiting the leeway that the Solis administration has to manage its growing fiscal deficit.
The lack of political conditions to implement greater controls on government spending and to gain approval for a fiscal package which would tidy up state finances is preventing multilateral lenders such as the World Bank or the IMF from lending money to Costa Rica, meaning that, after the elimination of the option to sell bonds to the Chinese government, Costa Rica will have to resort to the domestic market for funds, which will inevitably push up the cost of money for all sectors, including production.
Correcting the mistake made in July 2014, the Solis administration has reinstated the strategic political role of the tourism sector.
An article in Elfinancierocr.com reports that "... The Presidential House announced that the tourism sector will regain its rank within the government. The announcement of the correction made on Wednesday night by the President of the Republic, Luis Guillermo Solis, who signed an executive order to return the tourism sector to top place during the inauguration of Expotur 2015. "
Internal problems in the larger of the two current distributors is restricting supply in the market and has forced the government to authorize the operation of other distributors.
In light of the legal dispute faced by the main gas distributors in the country, which have stopped providing the service temporarily, the Costa Rican government has announced that they are willing to authorize the operation of other distribution companies that meet the requirements established by law.
The need to borrow every month in order to pay current account expenses is the main cause of the continuing increase in the central government's debt to GDP ratio.
At the end of 2014, total public debt, which includes the Central Bank of Costa Rica and other public sector entities represented 58.6% of all production. Rodrigo Bolaños, president of the Central Bank, said that "...
The reform under public consultation includes tax on remittances sent abroad, on the payment or crediting of interest, commissions and other financial expenses by natural or legal persons domiciled in Costa Rica.
From the order by the Ministry of Finance published in La Gaceta:
Caribbean-Central American Action (CCAA) is a private, independent organization that promotes private sector-led economic development in the Caribbean Basin and throughout the Hemisphere.
Operates in Panama, Nicaragua, Honduras, Guatemala, El Salvador, Costa Rica and Caribbean Community
Phone: (202) 331-9467
Our company is established in the Nicaragua Republic, work in the energy sector and construction, oriented consulting, advice and search for new investments in the power sector, in the development of renewable energy (wind, hydro, biomass, geothermal) specifically.
Operates in Nicaragua
Phone: (505) 253- 42902 - (505) 883- 05620
Production, transport & commercialization of alternative electrical energy. Consuling, advising & development of energy projects. Water & soil treatment sanitation & treatment. Air emission control.
Operates in Guatemala
Phone: (502) 5819-8166 - (502) 2260-3103
Grupo ICE, composed of the Costa Rican Electricity Institute (ICE) and its subsidiaries Radiográfica Costarricense (RACSA) and Compañía Nacional de Fuerza y Luz (CNFL), joined the Chamber of Information and Communication Technologies of Costa Rica (CAMTIC) as a strategic partner since June 2009.