Thursday 24 June 2021

Government Freezes Hiring in Public Sector and Orders Cost Cuts

"Working for Costa Rica" is the title of the photo on the President's Facebook page, asking the people to allow him to enter their home Sunday night in a televised address. See the video below.
“Working for Costa Rica” is the title of the photo on the President’s Facebook page, asking the people to allow him to enter their home Sunday night in a televised address. See the video below.

COSTA RICA NEWS – In what appears to be an attempt to cut costs and maintain popularity, the government of Luis Guillermo Solís issued a directive on July 14, ordering ministries and decentralized institutions to freeze 2.500 jobs vacancies, among other cost cutting measures.

President Solís, on his Facebook page says the measures are “part of a comprehensive strategy of this administration‘s vision for greater efficiency and a better investment. This measure will mean a saving of 42 billion colones.

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The goverment’s plan is to limit filling job vacancies to 15% or 500 of the current 2.500 vacancies, a savings of ¢22 billion colones to the public finances.

  • Cut by 20% “controllable” expenses for ministries and public institutions, that could mean a savings of another ¢22 billion colones.
  • Freeze of wages for heads of public institutions, representing as savings of at least ¢670 million colones.
  • Prevent the creation of new jobs in the public sector, save for specific cases and freeze the purchase of new vehicles for heads of ministries and institutions, except in cases of extreme deterioration.
  • Review all leases of buildings that now costs the government ¢27 billion colones annually and rental of computer equipment that goverment pays out ¢10 billion yearly.

“Our commitment to the conservation and efficient use of public resources is final, so we are working hard for the money of Costa Ricans is used in the best way, for your well being,” says Solís.

The directive is aimed at curbing the expenditures of ministries and decentralized public institutions, like the Caja Costarricense de Seguro Social (CCSS), the ARESEP, ICT (Tourism Institute), universities, and learning centres like the INA, putting limits on items such as transportation, travel, food, overtime, advertising, and office remodeling, among others.

Deputy Minister of Expenditure, José Francisco Pacheco explained that the cuts are aimed at cutting government expenditures between July 2014 and July 2015.

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President Solís’ speech to the nation on live television Sunday night.

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FACT CHECK:
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