Economic estimates and projections from the Central Bank do not expect the approval of a tax reform in 2017, as stated in the report of the Macroeconomic Program 2017-2018.
In the absence of the reforms proposed for current sales and income taxes, the central government’s financial deficit would reach the equivalent to 6% of gross domestic product (about ¢ 2 billion) next year.
In terms of public financing, the Program assumes that, just like in 2016, the Treasury will meet its requirements with internal debt placements, which would restrict the availability of resources for private sector loans (families and companies), as well as possible pressures regarding higher interest rates.
According to the Central Bank, although the Treasury served the requirements mainly with domestic savings in conditions of relative stability in domestic interest rates, public debt continued to increase when compared to domestic production, which introduces risks to the economic stability of the country.
The Costa Rican Union of Chambers and Associations of Private Enterprise (UCCAEP) expressed its concern about the figures from the Central Bank.
The Union disagreed with the projections on the fiscal deficit 2017. The group led by entrepreneur Franco Pacheco believes that as a consequence of the increase in the fiscal deficit, credit to the private sector will grow little.
Regarding inflation expectations, UCCAEP believes that the Bank must take the necessary measures to achieve its priority macroeconomic objectives.