Costa Rica: 2017 Budget up 12%

"In Costa Rica civil servants earn the most out of all Latin American countries, which is disproportionate to the economic and fiscal reality of the country."

Friday, September 2, 2016

An increase in resources for debt repayment, education and pensions account for the 12% increase in the 2017 budget compared to the 2016 budget.

According to a statement by the Ministry of Finance, "... the Bill for Fiscal Year 2017 is in the amount of ¢8.9 billion and is 12.1% higher than in 2016 ... due mainly to an increase in the debt settlement, resources for education and for the Ministry of Public Works and Transport. "

Criticism at the high projected budget was quickly forthcoming. Yolanda Fernandez, President of the Chamber of Commerce, said that "... ' Infrastructure is one of the main problems facing the country right now, so it is not fair to sacrifice the resources required in order to maintain an inefficient and excessively large state apparatus. In Costa Rica civil servants earn more than they do in all other Latin American countries, which is disproportionate to the economic and fiscal reality of the country'."

Another aspect strongly questioned is the increase in allocations for education, especially those aimed at state universities, with complaints that the educational outcomes fall short considering what is spent, which is above the average of OECD countries.

For the financial year 2017 the proposal of the Central Government amounts to ¢8,943.201.5 million (¢ 8.9 billion). Of this amount, 54.1% (¢ 4.8 billion) will be financed by revenue and 45.9 (¢ 4.1 trillion) through debt.

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