Road Works: Budget Reduced in Costa Rica

As a result of the health and economic crisis affecting the country, the government decided to cut the budget assigned to municipalities by $71 million to finance maintenance work on the cantonal road network.

Tuesday, July 7, 2020

Due to the spread of covid-19, the country is going through a crisis that is reflected in the drop in economic activity, which in April 2020 registered a -9.3% year-on-year variation in its monthly index.

The government has decided to tackle the crisis with cuts in public spending. One of the most affected items was investment in the maintenance of the cantonal road network, whose budget was reduced by 70% of the fund available to municipalities.

You may be interested in "Road Infrastructure: $4.3 Billion in New Projects" reports that the Ministry of Public Works and Transport (MOPT), notified the decision through a letter, which details that "... As part of the efforts being made by the Executive Branch in the context of the health and economic crisis, a cut in public spending is being instructed according to the above-mentioned official letter."

Karen Porras, executive director of the National Union of Local Governments, explained that "... the decline in revenue will affect plans to repair bridges and roads after the winter season. It will impact municipal initiatives for economic revival through public works."

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