Costa Rica: Fiscal Deficit Reaches 4.8% of GDP

State expenditures continue to exceed tax revenues while the government cries out for legislative approval of the proposed tax reform.

Monday, November 23, 2015

In October, total revenues amounted to ¢3,241,326 million ($6,047 million), recording a variation of 8.5%, while total expenditures reached ¢4,589,189 million ($8.561 billion), growing 9.6% compared to the same period in 2014.

From a statement issued by the Ministry of Finance:

Two months after the end of the year, tax revenues continue to show growth compared to the previous period. In October, the favorable difference in this area was of one percentage point compared with the same month in 2014 (going from 7.3% to 8.3%). The main components that explain this behavior are income tax, which grew by 6.3% in October to 14.8% earlier this year, and fuels, growing 9.1% in October, compared with 3.8% in the same period last year.

The result of tax revenue would have been even more positive if the tax on legal persons was in effect, the proceeds of which in October 2015 showed a reduction of ¢6.667 million compared to the same period last year. In order to restore this tax, aimed at strengthening security programs, the Executive supports a project submitted to the Legislative Assembly that seeks to recover these resources (Exp.19505).

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Costa Rica: Tax Figures up to February 2017

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As of February total expenditures recorded a slowdown of 1%, having increased by 6.8% compared to the 7.8% increase in the same period in 2016.

From a statement issued by the Ministry of Finance:

The First Vice President and the Minister of Finance, Fallas Helio, presented this week the tax figures at the end of February 2017, which show that both the primary deficit (total revenue less noninterest expense) as well as the financial deficit maintain the same behavior seen in February last year, 0.8% of GDP and 1% of GDP respectively.

Costa Rica: Fiscal Situation up to April 2016

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At the end of the first quarter the financial deficit was 1.6% of GDP, below the 1.9% of GDP recorded in the same period in 2015.

From a statement issued by the Ministry of Finance:

At the end of the first quarter of the year, the fiscal figures showed a decline of close to ¢86,000 million in the primary deficit (revenue less noninterest expense) and close to ¢38,500 million in the financial deficit.

Costa Rica: Fiscal Deficit At End of 2015 is 5.9%

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The interest paid by the government for debts incurred grew by 14% over last year, meaning that they went from representing 2.6% of GDP to 2.8% of GDP.

Although for the first time in four years total revenue grew more than total expenditures, this increase is still insufficient to cope with the growing fiscal deficit, which at the end of the year stood at 5.9% of production.

Costa Rica’s Fiscal Deficit Stops Rising

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The 10% increase in revenues will offset the 9.5% increase in central government spending, leaving the fiscal deficit at 3.5% of GDP, slightly below the October 2012 cumulative.

A statement from the Ministry of Finance reads:

Government deficit to October is slightly lower than in the same period last year