“No new taxes!”(For at least the next two years). President-elect, Luis Guillermo Solis has recently made some pretty lofty claims and priorities since his election. It makes me nervous all these good vibes coming from don Luis Guillermo who has given us so little substance to back them up.
Even the quick trip to Central America minus Nicaragua also makes me a little disconcerted.This does not seem to be the best time to get off on the wrong foot with Ortega. After all, Nicaragua is a neighbor and we might do better seeking a diplomatic compromise on critical territorial issues. Perhaps Ortega could become a major player assisting Costa Rica with its ever increasing“narcotraficante” problems since Nicaraguan patrols are far better trained and with superior equipment. In other words, a new government and maybe a new start is better than another “diss”?
The future President of ICE, Carlos Obregón in an interview published by Spanish language newspaper, La Nación said,“It is difficult to lower electricity rates, but possible” (This resonated around Paradise as words we really do like to hear.)
After all, who is not in favor of lowering some of the highest energy rates in the Western Hemisphere? But his bet was hedged by also saying, “…it is difficult…” followed by, “…it is possible.” He did not say “probable,” not the word “likely,” not even that a reduction of the absorbent rates is one of his objectives while in office.
But then again don Carlos does not speak for the new Administration.
On April 21, 2014 the Ministry of Economy stated that without immediate action, we can expect a 6% deficit of the GDP by the end of the year. In the 1st Quarter of 2014 we already have racked up a deficit of 1.5% of GDP. (The 1st Quarter reports that total revenues to the State increased 5.8% while expenses jumped 8.5%.)
According to a La Nación interview with the current finance minister: Edgar Ayales he stresses urgent changes, “The annual deficit and the public debt will be unsustainable in the medium and long range.” (In real terms, Costa Rica is broke and has been broke for years.)
However, the incumbent Minister of Finance,Thelmo Vargas is going to first analyze the deficit situation then make his own recommendations with the goal of lowering the deficit by one percent. (Is that1% of the current 5.5% or from the projected six percent? No answer.)
It will not be long now before we will know if this is going to be an administration of good words, procrastination or one which is result driven; regardless of all the words I love to hear hear.