The productive sectors have indicated that the state budget approved for 2015 is underfinanced and will force the government to raise taxes or issue more debt in order to comply with it.
The approved general budget for the nation is $4.824 billion an amount which according to the private sector can not be covered by current tax revenues, therefore in order to raise this amount there must be either be cuts made to services such as subsidies or social programs, increases or creation of more taxes, or more debt taken on.
The Ministry of Finance has submitted to Congress the budget for next 2014, anticipating a deficit of 6.2%.
The documentation submitted by the chief of Finance, Edgar Ayales, with the breakdown of costs and revenues of the State for 2014, still shows growing figures in the red.
Finance Minister Edgar Ayales stressed the need for tax reforms and a realignment of state finances.
In light of the downward revision of the forecast for economic growth by the Central Bank, the UCCAEP has reiterated its concern over the high fiscal deficit.
From a statement from the Costa Rican Union of Chambers and Associations of Private Enterprises (UCCAEP):
In relation to the review of the macroeconomic program by the Central Bank of Costa Rica (BCCR) released today UCCAEP states that:
If Congress does not approve loans which enable funding of the state budget, the crisis could be severe.
Roberto Villate, head of the Lider back bench group, said that as a block, they do not support the loan approval because from the beginning they did not agree to an underfunded budget and one without any programatic basis. The official said that with each loan "the country takes one more step in the direction of Greece or Cyprus".
The president of the Bank of Guatemala, Edgar Barquin warned that "In a decade, the debt level will be critical."
Guatemala's foreign debt currently amounts to 25% of gross domestic product (GDP), and it appears to be far from the critical point, which is indicated by 40% of GDP.
However Barquín explains that the problem is in the low payment capacity of the Guatemalan state, which could be compromised in terms of the maintaining a fiscal deficit at a reasonable level.
The deficit of the nonfinancial public sector was 2.1% of GDP at the end of fiscal year 2012, compared with a deficit of 2.2% of GDP in 2011.
A statement from the Ministry of Economy and Finance reads:
The deficit of the nonfinancial public sector (NFPS), was 2.1% of GDP at the end of fiscal year 2012, compared with a deficit of 2.2% of GDP in 2011, total NFPS revenues increased by B /.
During the first month of 2013 government spending was 16% higher than in January 2012, while income rose by 8.4%.
Crhoy.com reports that "In general, the central government deficit during the first month of the year stood at 0.84% as a proportion of gross domestic product (GDP). Meanwhile, interest expenses increased in the order of 36%, whereas a year earlier it increased in the order of 10.1%. "
In November, the balance between government revenues and expenditures showed a deficit equivalent to 4% of GDP.
In November the government deficit amounted to $ 1.82 billion, or 4% of the gross domestic product (GDP), the same level as in 2010. Nevertheless, in 2010 the shortfall was lower, at $ 1.52 billion. Of the $1.82 billion shortage the government needs to cover its running costs, $1.12 billion were financed with domestic debt and $700 million with external debt.
Congress has given final approval to the Costa Rica the government for the 2013 budget of $12.908 billion, 7.7% higher than in 2012 and a deficit of 45%, which will be financed with debt.
A statement from the Legislature reads:
The Legislative Assembly also passed with 27 votes from the 46 deputies present in the second debate the regular budget for next year, in archive number 18,554, which is around 6.4 billion colones of which 57% will be financed by fresh income and 43% with debt .
The increase in government spending in the first eight months of 2012 is even higher than the increase observed in the same period last year.
A statement from the Ministry of Finance reads:
• Deficit continues to grow despite efforts to control spending and reduce evasion
• Efforts to improve finance and control collections are strengthened
Tax revenues in the first eight months of the year reveal more dynamism in 2012 than last year.