Costa Rica Deficit Grows To $172 million

March 27, 2009

Costa Rica’s central government accumulated a ¢96 billion (over $171 million) budget deficit from February 2008 to February of this year, the Finance Ministry reported.

On Thursday, the ministry presented its February expense report showing a reduction in domestic earnings of 2.8 percent when compared to the same period last year. Spending, meanwhile, increased by 23.4 percent.

“Customs duties have continued to show the same negative (activity) since the end of (2008) as a result of the low domestic economic activity causing a lesser demand for imported products,” Finance Minister Guillermo Zúñiga said.

According to the Finance Ministry numbers, the rise in expenses was due primarily to an increase in salaries and social spending of 32.2 percent.

The government collected almost ¢154 billion ($275 million) in taxes during the month of February, which was a 19 percent reduction when compared with the February 2008 numbers.

If the fiscal situation stays on the same track, the country will confront a serious deficit, Zúñiga said on Thursday.

Aldesa, a financial consulting firm, said in a statement that the government’s finances could continue to deteriorate if there are additional decreases of state income from taxes.

–Vanessa I. Garnica

 

Facebook Comments

You may be interested

Costa Rica approves law against child abuse prepared by alleged victims of priest
Costa Rica
1 views
Costa Rica
1 views

Costa Rica approves law against child abuse prepared by alleged victims of priest

AFP and The Tico Times - April 24, 2019

Costa Rica’s congress approved on Tuesday a bill that extends the statute of limitations for the crime of sexual abuse…

International drug rehab in Costa Rica with the Costa Rica Treatment Center
Sponsored content
8 views
Sponsored content
8 views

International drug rehab in Costa Rica with the Costa Rica Treatment Center

The Tico Times - April 24, 2019

Costa Rica Treatment Center understands the process of addiction recovery from personal experience. Their evidence-based treatment programs are engineered to…

Costa Rica meets with Inter-American Commission on Human Rights to discuss Nicaragua, Venezuela, indigenous rights
Costa Rica
11 views
Costa Rica
11 views

Costa Rica meets with Inter-American Commission on Human Rights to discuss Nicaragua, Venezuela, indigenous rights

Alejandro Zúñiga - April 23, 2019

Costa Rica’s Minister of Foreign Affairs, Manuel Ventura Robles, met with the Inter-American Commission on Human Rights (IACHR) this week…

Do NOT follow this link or you will be banned from the site!