Public Finances Still Deteriorating

In Costa Rica the 1.7% increase in revenues accumulated up to May was not enough to offset the 8% increase in total expenses.

Thursday, June 21, 2018

From a statement issued by the Ministry of Finance:

June 21, 2018. The growth of 1.7% in total income accumulated up to May 2018, is insufficient to offset the variation of 8.1% of total expenses, 48% of which is due to the increase in interest.  This behavior generated a primary deficit (difference between current income and total expenditure excluding amortization and interest) in the central government of 1.2% of GDP and a financial deficit of 2.6% of GDP, exceeding the figures observed in the same period in 2017 (1% and 2.2% respectively).

At the end of this fifth month of the year, accumulated current revenues grew by 2% with respect to the same period in 2017, mainly as a result of the higher collection of corporation tax (¢19,089 million), the general sales tax (¢11,125 million), and that of income and profits (¢10,135 million) contributed to a greater extent by natural persons.

The tax on legal persons, fuels and the selective consumer tax, presented a contraction of ¢8,057 million, ¢5,193 million and ¢9,343 million, respectively.

Read full report (in spanish).

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