What would happen if Congress fails to secure the votes to approve the 2027 budget?

Costa Rica’s 2027 Budget could default to 2026 plan if the Legislative Assembly vote falls short

Q COSTA RICA — A Constitutional Court (Sala IV) order has blocked a second-round vote before November 29, intensifying a dispute over whether the proposed cuts could disrupt the judiciary.

If Costa Rica’s Legislative Assembly fails to secure enough votes to pass the 2027 national budget, the 2026 budget would take effect instead. Legislators would then need to introduce extraordinary budgets to adjust it.

The issue has become more urgent after the Constitutional Court ordered legislators not to hold the budget’s second-round vote before November 29. The measure followed a request from Supreme Court President Patricia Vargas, who argued that the proposed reductions could affect the judiciary’s operations. The budget is due to be approved by November 30, according to the Assembly’s rules.

Vargas warned that the cuts could lead to court offices closing, 2,400 judicial employees being dismissed, disruptions at the Organismo de Investigación Judicial (OIJ), and difficulties renewing software licenses.

She also argued that the Assembly was required to consult the judiciary because the spending plan could affect its functioning. On that basis, she maintained that approval requires a qualified majority of 38 votes.

Former Partido Unidad Social Cristiana (PUSC) legislator Alejandro Pacheco criticized the governing bloc’s handling of negotiations, saying it was concerning that the budget remained in this position and warning that the country could face consequences if the necessary votes were not secured.

Analysis: A procedural escape route, not a settled solution

A failure to pass the 2027 plan would not leave the government without a budget: under this scenario, the previous year’s budget would remain in force. That provides a fallback, but it would not automatically resolve the dispute over how public funds should be allocated.

Extraordinary budgets would be needed to make changes, shifting part of the political and fiscal debate into later votes.

The immediate question is also about the required threshold. Vargas says the Assembly needs 38 votes because the proposed cuts affect the judiciary. That position is central to the dispute; that does not mean the legal question has been finally resolved.

The Sala IV’s order temporarily constrains the timing of the vote, while the deadline leaves lawmakers a narrow window to reach agreement.

The practical stakes are concentrated in the judiciary: staffing, court operations, OIJ functions and technology renewals. The warnings describe potential consequences if the budget is approved with the cuts; they should not be read as confirmation that those outcomes are inevitable. The fallback to the 2026 budget could avoid immediate adoption of the contested plan, but it would leave lawmakers to negotiate adjustments through extraordinary budgets.

For now, the outcome depends on whether legislators can reconcile the vote threshold, the court’s timetable and the competing claims about the effects of the proposed reductions.

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