Costa Rica: Fiscal Deficit Less than 2% of GDP

While up to May Finance revenue grew by 10% interannually, Central Government expenditure increased by 13.1%.

Friday, June 14, 2013

"Finance revenue grew by 10% interannually up to May, driven especially by the collection of income tax, tributes which recorded a growth of 11.7% in May," noted an article in

"This increase in revenue pales in comparison to the rise of 13.1% in central government spending."

The deficit was financed with funds raised abroad with Eurobond issues, which has reduced the funds which the Treasury raises in the local market by 0.63% of GDP. "We have money to fund the government until April of next year," said Ayales.

The price of bonds has been reduced due to movement in interest rates abroad, which according to the chief of the Treasury, are just beginning.

More on this topic

Costa Rica's Fiscal Deficit: Official Projection Falls Short

March 2013

Costa Rica could have a greater fiscal deficit than the 4.8% estimated by the Central Bank for this year, reaching 5.1% of GDP.

According to the Fiscal Studies Program by the School of Economics at the National University of Costa Rica, this projection was based on total tax revenues increasing by 8.7%, taking into account a lower tax income and Customs taxes (due to a fall in imports) and also an increase in total expenditure of 11.5%.

$2 Billion Deficit in Costa Rica

December 2012

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.

Fiscal Deficit Continues to Increase in Costa Rica

May 2011

The fiscal deficit increased by 26.5% in the first 4 months of the year and has reached $733.3 million.

The amount is equivalent to 1.8% of Gross Domestic Product (GDP). In the same period in 2010, the amount was $579.8 million.

"We are seeing a larger financial deficit than the previous year in terms of GDP, which is consistent with the current projection that the deficit in 2011 would exceed 5% of GDP, " said the Finance Minister in office, Randall Garcia in an article publishes by, "He reiterated the need for the country to adopt a tax reform ..."

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”.

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