Advantages of Being a Productive State Official

In the Costa Rican National Development Corporation, there are 130 expendable personnel whose salaries are greater than $2,300 a month.

Friday, October 26, 2012

An article in quotes Wlliam Barrantes, the chief executive of the National Production Council (CNP), who manages the National Liquor Factory (Fanal), and runs the Institutional Supply Program (IAP), which sells food to ministries such as Justice (prisons), Security (police) and the Social Security Department (hospitals).

"The National Production Council (CNP in Spanish) will lower its payroll by ¢150 million a month ($300,000), going from 750 to 620 employees, as of this November. The plan, which will begin Oct. 31, is part of the entity’s modernization program and most of the redundancies will be voluntary. Only between 20 to 25 redundancies will be mandatory, the CEO said. He said the priority is achieving a financial balance. "

"Barrantes recognized that at this time the CNP has a structural deficit of ¢130 million a month ($260,000). This is on top of the historical accumulated deficit of ¢ 5,800 million ($11.6 million)."

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It has been pointed out that the solution to the financial debacle of the State of Costa Rica unavoidably involves rethinking the system of incentives and salaries of public officials. reports that "... economists and former ministers have said it's good that a containment of public expenditure be made, but if the current government and MPs really want to solve the budget deficit they must not stick only to the administrative unti but must also delve into the issue of public sector salaries."

Costa Rica Could Concession National Liquor Factory

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The National Production Council is considering using a concession to manage the National Liquor Factory, known as FANAL.

The Board of the National Production Council (CNP by its initials in Spanish) has requested the National Concessions Council's opinion on the subject.

$2 Billion Deficit in Costa Rica

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In November, the balance between government revenues and expenditures showed a deficit equivalent to 4% of GDP.

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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 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”.