Experts from the Central America Institute of Fiscal Studies (Icefi in Spanish) warned that the government institutions might weaken due to a fiscal deficit of 5.9 percent last year.
The analysts also warned that the central government’s debt grew 14.3 percent in two years.
The Icefi pointed out Costa Rica as the country with the highest fiscal deficit in Central America and the only country that hasn’t applied economic reforms since the great financial crisis 2008.
“Costa Rica is a society that in many aspects exemplifies a succesful democracy, however, on the fiscal subject it doesn’t seem being as successful, since its public accounts are weakening. This contrast reflects upon shortcomings of public assets and services”, said Jonathan Menkos, executive director of Icefi.
By blaming fiscal woes on just a matter of the state’s expenses and income endangers the living standards of Costa Rica, warned the Central American experts.
The International Monetary Fund recognized Costa Rica’s effort to increase tax collection, according to a recent statement. Nevertheless, it pointed the fiscal deficit and high dependence on dollars as hurdles the country has yet to overcome.
Source: Diario Extra.