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| The highest fiscal deficit in three decades was reached in 2 https://forum.costaricaticas.com/viewtopic.php?f=1&t=50668 |
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| Author: | HESTER [ Mon Jan 29, 2018 4:07 am ] |
| Post subject: | The highest fiscal deficit in three decades was reached in 2 |
In December 2017, Costa Rica’s fiscal deficit registered its highest figure in three decades according to the Central Bank. Data issued by the Ministry of Finance indicated that the difference between income and expenditure of the Government reached 6.2% of the Gross Domestic Product (GDP), higher than the 5.3% recorded in December 2016. The primary deficit, which constitutes debt-free expenditure, stood at 3.1% of GDP, higher than the 2.4% reported in December 2016. Taking into consideration that each percentage point is equivalent to 330.783 million colones, the fiscal deficit exceeded 2 trillion colones in December, while the primary deficit exceeded one trillion colones. The vice president of the Republic and finance minister, Helio Fallas, said the absence of a new Income Tax Law, a Value Added Tax and other new exploratory papers rules prevents the country from healing its public finances. According to the Treasury Department at the Finance Ministry, tax revenues grew only 5.3% in 2017, the lowest figure in the last five years; while expenses increased 9.1%, which is the highest figure since 2009. "The deceleration of economic activity and the sales tax with respect to the current productive structure, are factors that affect its collection, which from 2013 to 2017 decelerated, going from 4.7% to 4.4% of GDP," explained Fallas. He added: "The law that regulates it dates back to the eighties and currently the productive structure is based mainly on services, which, for the most part, are not taxed. This reaffirms the need to transform it into a value-added tax (VAT), a proposal that has been awaiting approval in the Legislative Assembly since 2015. |
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| Author: | MM3 [ Mon Jan 29, 2018 9:24 am ] |
| Post subject: | Re: The highest fiscal deficit in three decades was reached |
Costa Rica is on the cusp of economic disaster. The government had an international review done by team headed by the former Portuguese Minister of Development (because Portugal has such an awesome economy...). The study recommended taxing everything (because that's what Socialists do) including tourism. Costa Rica is an anti-business socialist oligarchy than happens to be a strong democracy. But if the wealthy oligarchs get elected everytime, things stay stagnant. |
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| Author: | Rico1040 [ Mon Jan 29, 2018 10:33 am ] |
| Post subject: | Re: The highest fiscal deficit in three decades was reached |
CR's high taxes kill any hope of a vibrant economy. The exorbitant import taxes are one example, especially since they don't protect any domestic production activities. The 13% tax on restaurants are another example; and the list goes on. Taxing tourism more translates to folks going elsewhere. The rich get richer, move their money into dollars, and the poor get poorer- just interview some of the nice ladies at the HDR and they will tell you first hand. Meanwhile, the Chinese government loans are hardly affordable; the challenges of doing business in CR are great. Paperwork, inspections, licenses and employee regulations are overwhelming to the average person. Where the current tax dollars are used is a mystery. It hasn't visibly been used for infrastructure. But, let's remember, this is CR, it's their country and they are definitely too bright to adopt any outsider's logic. |
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| Author: | Hank Daman [ Mon Jan 29, 2018 7:18 pm ] |
| Post subject: | Re: The highest fiscal deficit in three decades was reached |
Read the rules of the board. |
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| Author: | 911 Driver [ Mon Jan 29, 2018 10:06 pm ] |
| Post subject: | Re: The highest fiscal deficit in three decades was reached |
HESTERS 1st post, doubt he did, doubt to be heard from again, troll as you can see. But you are correct. Regards, 911 Driver |
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