At the end of the first four months of the year, the Central Government's financial deficit reached 1.9% of GDP, explained by the almost 8% growth in accumulated expenses.
In a statement the Ministry of Finance reported that "... At the end of the first four months of the year, the Central Government's financial deficit reached ¢670,560.0 million, representing 1.9% of GDP, a percentage higher than that presented in the same period in 2017 (1.8%).In this period total accumulated revenues showed growth of 3.8% with respect to the same months in 2017, while accumulated expenses increased by 7.6%.
The total amount disbursed by the government in payment of salaries up until October 2017 was $321 million, 18% more than in the same month in 2016.
According to a report by the Comptroller General of the Republic, a total of 233,111 posts were registered in October of last year, which are divided into 209,173 permanent and 23,938 contingent workers.By sector, 150,414 corresponded to the Central Government and 82,697 to the Decentralized Sector.
After recognizing the serious liquidity problems faced, the government has announced it will borrow another $1 billion for a hearty lunch that others will pay for tomorrow.
The $1 billion that the Central Bank of Costa Rica (BCCR) has been negotiating since May with the Latin American Reserve Fund (FLAR) to strengthen its reserves will arrive in October of this year, according to the BCCR authorities.
Using its corporate power and taking advantage of the power vacuum that is afflicting the State, a public university in Costa Rica is paying first world salaries, exacerbating the inequality that exists between Costa Ricans and severely distorting the labor market.
EDITORIAL
The degeneration of democracy which is happening in a lot of Latin American countries has Costa Rica as an example, a country which historically used to be a shining example of the best way to live in society.
It has been pointed out that the solution to the financial debacle of the State of Costa Rica unavoidably involves rethinking the system of incentives and salaries of public officials.
Crhoy.com reports that "... economists and former ministers have said it's good that a containment of public expenditure be made, but if the current government and MPs really want to solve the budget deficit they must not stick only to the administrative unti but must also delve into the issue of public sector salaries."
The academic corporatism which has come to power in Costa Rica brings a "vision of the world of the Social Democrats of the sixties and seventies."
An analysis carried out by Juan Carlos Hidalgo on his blog on Elfinancierocr.com on the proposed Costa Rican state budget points to a decalogue of macroeconomic horrors that besides contradicting election promises on cost containment and austerity, show an outdated vision of the new government regarding the alleged benefits of increased public spending in the functioning of a modern economy.
The president of Honduras is inviting bids for the administration of a trust for the timely payment of wages of state officials.
Elheraldo.hn reports that President Porfirio Lobo said that "This measure is intended to end the constant strikes by institutions and workers' protests because of non-payment of wages and other benefits enjoyed by government employees. '
In the Costa Rican National Development Corporation, there are 130 expendable personnel whose salaries are greater than $2,300 a month.
An article in Nacion.com quotes Wlliam Barrantes, the chief executive of the National Production Council (CNP), who manages the National Liquor Factory (Fanal), and runs the Institutional Supply Program (IAP), which sells food to ministries such as Justice (prisons), Security (police) and the Social Security Department (hospitals).
In light of increases of salaries of mayors and councilors, business leaders in El Salvador are urging the austere and responsible use of public funds.
A statement from the Chamber of Commerce and Industry of
El Salvador reads:
Public servants should not misuse the resources they manage
With the growing fiscal imbalance and severe economic crisis facing the country, we demand that officials in charge of state bodies and municipal councils show greater accountability and transparency in the management of public funds they are in charge of.