San Jose – The Government of Costa Rica presented to Congress the budget for 2013 by U.S. $ 12.888 million, 7.7% higher than in 2012 and will be financed with 43% debt.
“The country can be assured that this bill was drafted in a very responsible and austere, meeting the commitments of the administration (of President Laura) Chinchilla with the different sectors of the population,” he said in a statement the minister Finance Ayales Edgar.
The budget states that will be funded by 57% from current revenues and 43% with debt, while 47.4% of the money will go to social spending such as education, social protection, health, housing, recreation and culture said Ayales.
The 2013 budget increased by 7.7% compared with 2012, but Ayales stressed that this increase is lower than in the two previous budgets when it was 13.7% and 9.1% in 2011 and 2012, respectively.
The Ministry of Education will receive about 3.479 million U.S. dollars, up 9.3% from 3.181 million last year, while in security spending will increase by 15.1% from 350.4 million dollars to 403, 5 million.
Meanwhile, the Judiciary will receive 628.8 million dollars, representing an increase of 7.9% compared to 582.7 million in 2012, while the Legislature’s budget will rise by 5.8% from from 56.9 million to 60.2 million between the two periods.
The Costa Rican Congress has the time to discuss, amend and approve the budget until 30 November, but if not ratify the law requires be approved automatically, as happened last year.
Ayales Minister warned that the fiscal deficit of the project is around 4.5% of gross domestic product (GDP), which is not considered sustainable in the medium and long term, so they urged about reforming the tax system.
“We need comprehensive reform that includes measures on the expenditure side, revenues and financing”, said the minister.
The government of President Laura Chinchilla tried unsuccessfully this year legislative approval of a tax reform that sought to rise by 1.5% of Costa Rica’s GDP for the deficit in recent years has been between 4% and 5%.
The Costa Rica News (TCRN)
San Jose Costa Rica