American Expatriate Costa Rica

Fiscal deficit grows at a slower pace

The fiscal deficit, or excess government spending over tax revenues, keeps the pace of deceleration shown in previous months.

This means that the gap is growing less and less. In January this year, the deficit amounted to ¢185 billion, about ¢9,400 million less than a year ago.

In terms of comparison to the size of the economy, the deficit to January this year amounted to 0.55% of GDP, lower than the figure for 2016, when it was 0.62%.

In January, the revenues grew at a rate of 8.4%, driven especially by income taxes and fuel.

On the expenditure side, the slowdown continues. The growth was reported only in capital expenditures for transfers made by the government to education boards for infrastructure in January.

However, wages and salaries – one of the main triggers – grew at a pace of 2.3%.

crhoy.com