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.
Despite a direct order from the president, Costa Rican ministerial bureaucracy is still blocking a system which looks to eliminate corruption in public procurements.
The Ministry of Finance has not yet signed the decree establishing the mandatory use of Mer-Link in procurement processes, which could delay its implementation in January 2014.
Nacion.com reports: "Although the first version of the decree was received by the Ministry of Finance on 6 June, it has yet to be signed, a fact which will delay implementation of the system, according to the director of the Digital Government, Alicia Avendaño".
During the first six months of 2013, the Central Government's financial deficit reached $1.154 billion, equivalent to 2.3% of GDP.
From a press release by the Ministry of Finance of Costa Rica:
In June, 2013, primary expenditure, ie total expenditure excluding interest, grew by 8.8%, significantly less than the 11.2% recorded last year. The main elements which contributed to this slowdown were continued control of payroll spending and a slow down on the part of current transfers.
The budget for 2013 submitted by the Government to the Legislature indicates that expenditure on public works will be cut by 13%.
According to the budget for 2013, presented to the Legislature, capital expenditures by the central government will amount to $675 million, 8% less than what was authorized in the 2012 budget. Taking into account the 5% inflation forecast for next year, the actual drop is 13%.
The 8% tax applies to securities issued in US dollars as of April 22.
The measure is part of the Article 22 reform of the Law on the Protection of Victims and Witnesses, which came into effect on April 22. This rule applies to securities issued from that date onwards. It does not apply to those already in circulation.
In relation to the reform of the article, la Nación published: "In practice, this means that a person who wants to buy a certificate in US dollars or government securities in US dollars will face the tax."
Various government authorities are promoting three different system in efforts that seem to be heading in conflicting directions.
The drive to become the platform for directing all public purchases is increasing.
There is now the possibility that the purchasing system of the ICE (Costa Rica Institute of Electricity) will become the base for ordering public acquisitions and evolve to the electronic phase, which is already being disputed by CompraRed and Crcompr@s.