Because between 2018 and 2019, the consumer's fixed expense free budget in Costa Rica is estimated to have decreased from 18% to 14% of total revenue, four out of ten buyers made the decision to change brands, and two are considering doing the same.
A study presented by Elfinancierocr.com, explains that women are the most affected by the economic situation of the country, since they said that after subtracting all their fixed costs, they only have 12% of their budget.
Out of the nearly $570 million earmarked for public investment in the 2018 budget, about $320 million will go towards road infrastructure and energy.
According to the 2018 budget submitted by the Executive Branch, of the $569 million allocated for public investment, the Public Infrastructure and Services Secretariat (INSEP) will receive about $168 million and the National Electric Energy Company (ENEE), $151 million.
The 2017 budget drawn up by the government of Costa Rica is the result of an arithmetic exercise, where the political will of the Solis administration has barely reduced maintenance and has increased privileges in the dominant state corporations.
EDITORIAL
Scandalous could be the best word to describe the magnitude of the increase of 12% which the Solis Rivera administration has made in the 2017 public budget.The 12% increase not only far exceeds the projected inflation for this year, but is disproportionate and far from reality, considering the serious and urgent fiscal problem facing the country.
The countries facing the greatest risk of fiscal unsustainability within three years are El Salvador and Honduras, followed by Costa Rica and with less risk, Nicaragua and Panama.
From the "EconomicOutlook"section of the V Report on the State of the Region 2016:
Nicaragua is the only country in the isthmus that was left out of the list of countries that meet the "minimum requirements" for fiscal transparency, according to the State Department.
The "Fiscal Transparency Report 2016" by the US State Department, includes Guatemala, Costa Rica, Panama, Honduras and El Salvador in the list of countries which meet the minimum requirements for fiscal transparency, which the State Department bases on the public availability of information on the state budget and government contracts and tenders for the exploration and exploitation of natural resources, including methods of tendering and conditions for concessions.
"... State overregulation has made business legality a privilege that can only be accessed with economic or political power. "
EDITORIAL
In these countries, poor since time immemorial, state bureaucrats whose regular salaries allow them to live in a first world fantasy land have as their primary concern checking that things are done as they should be, that is to say, as they are done in the first world.
The technical redefinitions that make up a successful tax reform should be based on a reformulation of the social contract which establishes national goals.
Nacion.com reports that "According to Augusto de la Torre, Chief Economist at the World Bank, the fiscal debate is more than just an economic debate, it is almost a philosophical debate about the kind of state we want to have."
In the absence of concrete plans to bail it out, the Honduran Congress has awarded an amount that will allow the telecoms company to survive for a few more months.
"These measures have the approval of the Executive, as was requested at the Legislative Budget Commission, in a form of "washing their hands" of the matter if the measure does not work", reported Laprensa.hn.
The Central American Institute for Fiscal Studies has concluded that only the public debts of Panama and Nicaragua, using official data, are sustainable in the medium term.
The main theme of the fifth edition of the 'Lente Fiscal Centroamericano' (Central American Fiscal Lens) is an analysis of debt sustainability in Central America, which depends greatly on interest payments on debt, economic growth, inflation, revaluation and management of the fiscal deficit.
Sales of securities by the Honduran government in 2013 have been at interest rates of around 6%.
According to Evelyn Bautista, Vice Minister of Finance for Credit and Public Investment, of the total amount of $419 million authorized by Congress in the General Budget of Revenues and Expenditures, they have managed to issue in the domestic financial system 75% of that figure, and they plan to issue the remaining 25%, which amounts to $105 million.
Representatives in the Honduran Congress have refused to vote for budget increases where contractors bid low for works only to later claim large cost increases.
"They said they are not looking at the progress of the works already tendered, for which reasons they haven’t ruled out that this delay is a strategy to ask for an extension of the budget for these projects.
The severity of the fiscal crisis in Honduras has forced a package that includes spending cuts in the 2012 budget of $61 million and an 11% reduction on salaries over $3,500.
A statement from the Presidency of Honduras reads:
Government approves draft measures to reduce public spending
In the Council of Ministers, a report has been released on the technical and financial situation of ENEE.
The budget approved by the National Congress represents an increase of 8.5% compared to 2011.
The increase in the budget ($ 582 million) is destined almost exclusively to cover increases in teachers salaries.
The departments which have been designated the most resources are Education with $1,227 million, Health $563 million, Interior $199 million, and Security $184 million.
The amount allocated to investment in public infrastructure in the 2011 budget is the second lowest in the last ten years.
The investment, according to figures from the Central Bank of Honduras, is 6.72% of the total budget, making it the second lowest in the last ten years. The lowest was recorded in 2002.
"Among some Latin American countries, Honduras, with only 6.72%, has one of the lowest rates of investment.
The budget approved by the council of ministers represents a 10% increase relative to 2010.
The document sets the country's 2011 budget at $7.039 billion of which 56.8% will be managed by the central government with the remaining 43.2% administered by decentralized institutions.
The Finance Minister, Chong Wong, told La Tribuna that, "Honduras' economic outlook is bleak but with the prospect of improvements in the coming months taking into account donations received and planned investment projects worth between $582 and $635 million".