Friday 18 June 2021

Government Presents Five Year Plan To Heal Country’s Financial Problems

With only weeks to go of this current administration, Finance Minister, Édgar Ayales, is recommending a move to a “Value Added Tax” (VAT) and raising the tax rate, to address the country’s financial problem.

The 44 page document entitled “Cómo lograr la consolidación fiscal?: Recommendaciones para una hoja de ruta” (How to achieve fiscal consoliation, recommendations for a road map), the Chinchilla government’s plan would heal the country’s financial situation in five years.

Proposed is a cap on the decifit (2% of production in the long term), implement a global income tax, a single wage structure for new public sector employees, evaluate and streamline tax exemptions, and increase the tax on goods and services from the current 13%% to 15%.

- Advertisement -

The Ministry of Finance document warns of the looming problem is action is not taken.

Minister Ayales explained that if the financial problem is not corrected by 2019, the public debt will exceed 58% and the government’s deficit will be around 8% of production.

For this year, the current government is forecasting a 6% deficit of production and as of January last the government debt was 34%.

Ayales said that the proposal was presented to both – the Partido Accion Cuidadana (PAC) and Partido Liberacion Naional (PLN) – political parties in the election process that could form a new government in May.

- Advertisement -

Helio Fallas, vice-presidential candidate for the PAC, told the media that he would like to study the document before offering an opinion.

“What I can say that we will study it carefully and, based on the analysis, some measures could be considered in the next government,” Helio told La Nacion.

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

The Best Sports To Play On A Beach

Costa Rica has some of the best beaches in the world....

Since 2018 MECO has received contracts from the State for more than ¢139 billion

QCOSTARICA - Almost ¢140 billion colones (US$227 million dollars) is the...

MOST READ

Immigration system failure affected passengers at the San Jose airport Monday

QCOSTARICA -  In yet another system-wide failure in the immigration check-out, passengers looking to leave Costa Rica Monday morning by way of the Juan...

Lack of space on Racsa’s hard drive paralyzed immigration consultation at the airport this Monday

RICO's DIGEST - We've all had this happen, your computer's hard drive is full and your computer crashes. But we are not the Radiográfica...

Today’s Vehicle Restriction June 16: 5 & 6 CANNOT circulate

Today, Wednesday, June 16, vehicles with plates ending 5 & 6 CANNOT circulate The measure is countrywide and applied between 5:00 am and 9:00 pm,...

Rainy afternoons and nights this week in most of the country

QCOSTARICA - Characteristic of the rainy season, we will see rain in the afternoons and nights in the Central Valley, the entire Pacific coast,...

On Monday the vehicle restriction will change, again

QCOSTARICA - In times of pandemic, things change constantly, especially when it is necessary to tighten the belt to reduce the contagion of covid-19. The...

Nathalie Álvarez Mesén’s feature debut, Clara Sola, ready for the Cannes Directors’ Fortnight

Q ENTERTAINMENT (CINEUROPA) Nathalie Álvarez Mesén’s debut feature, Clara Sola, is ready to take part in this year’s Directors’ Fortnight at the Cannes Film...

Simple to request certification of vaccines against covid-19 applied in Costa Rica and abroad

QCOSTARICA - The Ministry of Health issued a new guideline on Thursday that establishes the requirements to request the vaccination certificate against covid-19 in...

“Caso Cochinilla”: Name arose when comparing parasite with hidden corruption

QCOSTARICA - On Monday, the Organismo de Investigacion Judicial (OIJ) moved to the raid, seize and arrest of their investigation into corruption of public...

Fifth tropical wave precipitation will be heavier in the north of the country

QCOSTARICA - For this Wednesday, the arrival of the fifth tropical wave of the season is expected, thus reinforcing the rainy activity mainly to...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.