Tuesday 22 June 2021

Legislators breaking new Assembly floor by cutting annuities for officials

QCOSTARICA – One of the first laws that the legislators will approve in the new Legislative Assembly building is the one that eliminates the payment of annuities for public officials in 2021 and 2022, as a result of the weak fiscal situation triggered by the COVID-19 pandemic.

This week, legislators moved into the new Congress

Days before leaving the facilities of the old Congress, 32 legislators approved the bill, however, their second debate was truncated due to the move from the ol legislative headquarters and on Monday, in the new Legislative Assembly floor (plenario in Spanish) when the discussion and final vote is resumed.

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The bill eliminates the payment of annuities to officials of the Executive Branch, including ministries and decentralized institutions, as well as to the Legislative and Judicial powers, their auxiliary institutions, and the Tribunal Supremo de Elecciones (TSE) – elections tribunal and civil registry.

These institutions will not be able to budget any annuitie payments in 2021 or 2022.

The Executive Branch estimates that this saving would be ¢44 billion colones (about US$75 million dollars) which would be injected into the National Emergency Fund to address the crisis due to the COVID-19 pandemic.

Initially, the government’s idea was to eliminate the payment of annuities in 2020, however, the proposal was not approved before June 1 when the payment was applied.

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The measure will also be applied in the autonomous entities (such as ICE and AyA), State companies (such as RECOPE) and the municipalities.

The Treasury will only be able to use that money to finance expenses that, at the moment, are planned to be covered with internal debt.

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FACT CHECK:
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Q Costa Rica
Reports by QCR staff

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