The approval of the bill for the Strengthening of Public Finances in the second reading will strengthen the stability of the country and would give a boost to economic growth, employment and national well-being, according to Rodrigo Cubero, president of the Central Bank.
According to the estimates of the Monetary Authority, if approved as a law of the Republic and if its provisions are faithfully fulfilled, this reform would reduce the fiscal deficit by around 3.7% of the gross domestic product (GDP) for the year 2022, and it would allow the central government debt to stabilize and begin to drop, as a percentage of GDP, starting in the year 2023.
The ruling of the Constitutional Chamber constitutes a firm step towards the final approval of the Law on Strengthening Public Finances, which will help restore the sustainability of public finances in the medium term and strengthen the country’s macroeconomic stability,”
This judicial decision paves the way for an early approval of the fiscal plan by the Legislative Assembly, which will help restore confidence in the Costa Rican economy and reduce the pressures we have observed in recent months on interest rates and the exchange rate,”
added the president of the bank.
On Friday, seven magistrates of the Constitutional Chamber gave the green light to file 20.580 so that it can receive second legislative reading and become a law of the Republic. This procedure, according to tax experts, could move forward quickly over the next week.