Fiscal Deficit Down 65% During First Two Months

March 23, 2007

Costa Rica’s fiscal deficit dropped 65% during the first two months of this year because of a 33% increase in government income, Finance Minister Guillermo Zúñiga announced March 16.

At the end of February, the fiscal deficit registered $38.9 million, 65% less than during the same period in 2006, when it reached $111 million.

The government’s income at the end of February registered $564.6 million, a 33% increase over the $424.6 million reported during the same period last year.

Its total expenditure, including interest on debt, totaled $603 million, up from the $535.8 million it spent during the first two months of 2006.

Zúñiga lamented that interest on the country’s debt has “eaten up” its efforts to increase income and reduce its deficit.

Among actions the government plans to carry out to continue lowering the deficit include aggressive tax collection, better control of costs to focus on its main priorities and promotion of laws that would create new taxes, such as a tax on luxury residences.

The minister said that although he does not have access to statistics on tax evasion this year, it remains a “serious” problem. The Comptroller General’s Office reported that in 2005, $800 million in taxes went unpaid.

 

You may be interested

Response to disaster: aid successes, struggles in post-Maria Puerto Rico
Weather
138 views
Weather
138 views

Response to disaster: aid successes, struggles in post-Maria Puerto Rico

John McPhaul - December 13, 2017

As Costa Rica joins many other nations in looking back upon the horrendous 2017 hurricane season, longtime Tico Times contributor…

Looking back at Hurricane Maria: the initial impact
Weather
1354 views
Weather
1354 views

Looking back at Hurricane Maria: the initial impact

John McPhaul - December 12, 2017

As Costa Rica joins many other nations in looking back upon the devastating 2017 hurricane season, longtime Tico Times contributor…

Cold front claims fourth victim in Costa Rica
Weather
3953 views
Weather
3953 views

Cold front claims fourth victim in Costa Rica

Katherine Stanley - December 12, 2017

High winds claimed the life of a fourth victim in Costa Rica as the cold front that has been moving…