American Expatriate Costa Rica

Fiscal deficit reached 1.6 percent of GPD in 2016 first quarter

The financial deficit of the Government amounted ¢495.000 million, which represents 1.6 percent of the Gross Domestic Product (GPD)

In the first quarter of 2016 the fiscal deficit diminished 1.9 percent of GDP in comparison with the same period last year.

According to data published last night by the Finance Ministry, in the first four months of 2016, total expenditures grew 3.1 percent and total income went up 7.3 percent, which explains why the deficit lowered within a year.

On the income side, the most important contribution was tax revenues collection that increased 16.3 percent. On the expenses side, the items that expanded was the payroll by 3.2 percent, interests grew 19.2 percent, and capital, which measures investment, diminished by 33.8 percent.

“We keep reducing financial deficit and we’re delivering our commitment to decrease expenditures and increase income”, said Helio Fallas, Finance Minister.

Fallas reminded that the country’s risk assessment will start in the last quarter of the year. By then, he added, would have been approved several fiscal legal bills and made advances in discussions about value-Added tax and revenues tax projects.

Source: La Nación.