Finance Minister: Not
Planning on Resigning
While admitting he is frustrated as a finance minister and a Costa Rican, Finance Minister Alberto Dent yesterday said he is not considering resigning from his post because of the inability to get the Legislative Assembly to approve the much-delayed tax plan.
(Click for more)

Police Evict 190 Families
From Central Pacific Beach
Police from Quepos, on the central Pacific coast, yesterday carried out the “administrative eviction” of 190 families living on Playa Rey, the Public Security Ministry announced.
(Click for more)

Renowned Mental Health Expert
Visits Curridabat Rehab Clinic
Renowned U.S. researcher Kathryn Shafer and a group of students from the University of South Florida (USF) will offer their knowledge in combating drug addiction to service providers at a rehabilitation clinic in Curridabat tomorrow.
(Click for more)

World Refugee Day
Celebrated Tomorrow
In remembrance of those who were forced to flee their countries to escape racial, religious and political persecution, asylum seekers and refugees in Costa Rica will present music, dance, photos and a soccer match to celebrate World Refugee Day.
(Click for more)

Ballet Show “Bird of Fire”
Performance by the National Classic Ballet Company, today at 10 a.m. (special presentation for students and elders) and 8 p.m. (to benefit girls at social risk); Sat., June 19, 8 p.m.; Sun., June 20, 6 p.m. at the Melico Salazar Theater, Av. 2, between Ca. 2 and Central in San José. Info: 283-8891.

Music Concert
Ekaterina Shitskaya, Gerardo Duarte (piano) and Eddie Mora (violin) perform works by J. S. Bach, A. Schnitke, I. Cardona and J. Castro Carazo, Sat., June 19, 11 a.m., at The Julia and David White Artist Colony in Ciudad Colón. A light lunch will be served. Info: 249-1414.

Boat Competition
The Costa Rican Tourism Institute (ICT) and the Taiwanese Embassy invite everyone to the competition of Dragon Boats to celebrate the Day of Taiwanese Culture, Sat., June 19, 8 a.m.-1 p.m. Registration is free, but entrance fee is ¢2,500, which includes food and beverages. Info: 281-0604.

Finance Minister: Not
Planning on Resigning
By Fabián Borges
fborges@ticotimes.net

While admitting he is frustrated as a finance minister and a Costa Rican, Finance Minister Alberto Dent yesterday said he is not considering resigning from his post because of the inability to get the Legislative Assembly to approve the much-delayed tax plan.

Instead, Dent said he would continue to dedicate most of his waking hours to making sure the Legislative Assembly votes on the plan soon.

First proposed 26 months ago, the Permanent Fiscal Reform Package aims to increase government revenues and permanently reduce the fiscal deficit by creating new taxes and improving collection of existing taxes (TT, Dec. 5, 2003).

Yesterday, Dent again stressed the need to approve the plan and warned failure to approve it could lead to a devastating financial crisis.

Had the tax plan gone into effect at the beginning of this year, the government would have had an additional ¢192 billion ($441 million) in revenues during 2004, according to the Finance Ministry.

However, without additional funds, the government’s 2004 fiscal deficit is projected to reach ¢239 billion ($551 million). Under that scenario, total public debt will total ¢2.9 trillion ($6.7 billion) by the end of the year, or about ¢737,000 ($1,700) per person.

The government will pay an average of ¢923.6 million ($2.1 million) in interest payments on the debt during each day of 2004, the Finance Ministry warned.

These estimates are based on the assumption that interest rates remain stable at 15.4% a year in colones. However, the U.S. Federal Reserve has warned it will begin raising interest rates in the coming weeks. A rate hike in the United States would result in higher interest rates here and would translate into larger interest payments for the government, Dent explained.

“If this reform is not approved, obviously we will be forced to cut spending,” Dent said. “We can’t stop paying salaries. We have to continue paying pensions to retired workers. We can’t stop paying interests. It’s the basic services the state offers that would be affected.”

Dent warned the government would be unable to hire new teachers or build additional local basic health-care clinics (EBAIS) unless the plan is approved.

As he has in the past (TT, Feb. 20), Dent again blasted legislative deputy Federico Malavassi of the Libertarian Movement Party for attempting to filibuster the tax plan. This time, he accused Malavassi of conspiring with wealthy groups that would be forced to pay higher taxes under the bill.

“This project is opposed by many people, people who have lived like millionaires without contributing to the Costa Rican State,” Dent alleged. “They have found backing from the Libertarian Movement, which has offered them their services to oppose this reform.”

In recent weeks, the Libertarians have been running ads on national television warning viewers of the dangers of the tax plan. The ads are meant to counteract government propaganda that stresses the plan’s importance.

During yesterday’s press conference, Dent openly challenged the Libertarians to reveal who has been paying for the ads.

Since it was first proposed, the Fiscal Reform Package has been studied and reformed by several legislative commissions, which have consistently failed to meet deadlines to put the plan to vote.

In February, Dent announced he would cut ¢72 million ($171.4 million) from the budgets of 15 ministries and several social programs if deputies did not approve the plan by the end April. Deputies failed to meet the deadline, which was extended until the end of May. The deadline was later extended indefinitely (TT, April 16). The budget cuts have not been made.

The tax plan is in its final phases. It has made it out of the legislative commission and has been transferred to the floor of the Legislative Assembly. Deputies are now issuing the final reform motions before putting it to vote (TT, June 11).

Dent says he expects the plan to be voted on by the end of July.

Return To Top Of Page