Costa Rica’s fiscal deficit to reach 6.9 percent of GDP in 2016

By Zach Dyer

Costa Rica’s 2016 budget is set to see the smallest percentage increase in 10 years, but the deficit continues to rise, according to comments from acting Finance Minister José Francisco Pacheco on Tuesday. The Solís administration’s “austere” ₡8 trillion ($15 billion) budget did not propose any cuts to services or benefits, focusing its cuts almost exclusively on the executive branch.

Next year’s budget proposal was presented to Legislative Assembly President Rafael Ortiz and lawmaker Rosibel Ramos, both of the opposition Social Christian Unity Party, during a ceremony at the Assembly in San José. Officials used words like “crisis” and “precarious” to describe the country’s fiscal situation after years of legislative gridlock that have been unable to rein in Costa Rica’s deficit, despite several downgrades from international ratings agencies.

Costa Rica’s fiscal deficit is set to reach 6.9 percent of gross domestic product during the next budget cycle – 0.5 percent higher than in 2015. The country’s total debt is equivalent to 49 percent of the GDP, Pacheco told reporters.

Members of the Solís administration said they would not propose any tax legislation during the first year in power, but that is certainly not the case this go-round. The executive branch has been pushing eight different bills designed … continue reading

Via:: Tico Times