Tuesday 7 February 2023

President Creates Thousands of Jobs For Bureaucrats

Money raised by the value added tax (VAT) served in part to pay payroll for new bureaucrats

Paying the bills

Latest

China apologizes to Costa Rica for balloon flyover

QCOSTARICA - You have most likely heard about the...

Drivers get the scare of their lives on route 27 due to the fall of a huge stone

QCOSTARICA - A huge falling rock that narrowly reached...

Two new foci of avian influenza detected in Costa Rica

QCOSTARICA - Two foci of avian influenza were confirmed...

Daniel Ortega proposes that all countries have their “atomic weapon”

Q24N (EFE) The president of Nicaragua, Daniel Ortega, stated...

Online Casinos vs. Sports Betting: Which is Better for You?

Let's break this issue down into two main industry...

Reasons to use Crypto while gambling

Of course, it's hard not to pay attention to...

Why did the price of bread drop? Global and local conditions drive sales

QCOSTARICA - The Musmanni chain of bakeries applied a...

Dollar Exchange

¢574.12 Buy

¢581.69 Sell

7 February 2023 - At The Banks - BCCR

Paying the bills

Share

In almost two years (May 8) of is administration, President Carlos Alvarado allowed the creation of 37,000 jobs in the public sector, according to data from the Instituto Nacional de Estadísticas y Censos (INEC) – National Institute of Statistics and Censuses.

Of the 37,000 new jobs, 11,000 are in ministries, Legislative Assembly and Judicial Power, which generate pressure on the deficit, while the rest correspond to autonomous institutions, such ICE, AyA, Recope, etc,  which increase the cost of services.

- Advertisement -

In its report, La Rupublica says the growth in the state payroll did not mean a greater expense for the central government since the application of the Ley de Fortalecimiento de las Finanzas Públicas – Law of Strengthening of Public Finances  – also known as the Reforma Fiscal, cushioned the impact by cutting bonusess and calculating the annuities as a fixed amount and not as a percentage.

In fact, the growth of salaries of the central government slowed down, going from 5.22% in 2018 to 3.09% in 2019, because it issued a decree to limit the salary increase to ¢3,750 biannually per person, according to the Minister of Finance, Rodrigo Chaves.

The minister says the State lost the opportunity to achieve savings of billions of colones, since the money that was obtained with the new taxes associated with IVA (Value Added Tax – VAT) and various changes in income was used to pay new positions.

The bad news is that this is happening at a time when Chaves announced that the fiscal deficit closed at 6.9% of GDP for last year, which represents the highest figure in the last 40 years.

It also in the middle of a dispute between the president and the opposition over the application of the fiscal rule, which limits the spending growth by 4.6% for 2020.

When Alvarado began his administration in 2018, there were barely 275,000 civil servants, while now, according to INEC, there are 312,000, half of which are in the central government.

- Advertisement -

 

- Advertisement -
Paying the bills
Avatar photo
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

Tourism group supports decition to collect VAT on home rental platforms

QCOSTARICA -  The Tourism for Costa Rica group of entrepreneurs support...

Airbnb and others must apply 13% VAT starting November

QCOSTARICA - The Ministry of Finance (Ministerio de Hacienda) announced an...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.