CONAVI to Receive Road Repair Funds

July 29, 2005

FOLLOWING yet another rulingfrom the Constitutional Chamber of theSupreme Court (Sala IV), the FinanceMinistry has said it will transfer ¢18.5 billion($38.6 million) to the NationalRoadway Council (CONAVI) for roadrepairs, according to La Nación.That would put CONAVI’s budget at¢28.5 billion ($59.5 million) for the year,significantly less than the ¢53 billion($110 million) it is legally owed, the dailyreported. CONAVI, the Costa RicanConstruction Chamber, municipalities andprivate citizens – among others – havecomplained that the Finance Ministry isbreaking its obligations by not fundingroad repairs (TT, April 1).According to the Law of TaxSimplification and Efficiency, 30% of revenuesfrom gas taxes must go to CONAVIand municipalities for road repairs. Thatwould equal ¢53 billion for this year. TheFinance Ministry has already givenCONAVI ¢10 billion ($20.9 million) thisyear.The Sala IV ruled that the ministrymust turn over the tax funds in November2004 after a group of municipal leaderssued the ministry. However, FinanceMinister Federico Carrillo maintains thegovernment does not have the funds withwhich to comply (TT, Nov. 19, 2004).

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