Finance minister Rocío Aguilar warned that the longer the decision on the tax reform is delayed, the greater the cost for Costa Rica.
The longer it takes to decide, the more expensive it will be for the country,”
said the hierarch when defending the bill to strengthen public finances, which is processed through an abbreviated procedure in the Legislative Assembly.
The minister said that the rigidity of public spending and the priority attention given to social programs to serve the most vulnerable groups of the population demand urgent actions that generate new income, but also that help regain the international trust in the country and reduce the high level of debt.
According to Aguilar, if no measures are taken at this time, the adjustment necessary to stabilize the public debt will come to represent 8% of the Gross Domestic Product (GDP), the same percentage that is allocated to public education.
She also recalled that international markets have reacted negatively because of the country’s delay in approving the tax reform, while the signs of commitment have had positive effects. This happened when the government announced measures to contain spending in early June, causing the price of the country’s sovereign bonds to rise.
The Comptroller General of the Republic, Marta Acosta, has also warned about the consequences of not acting on time.
However, the unions called for a national strike on Monday to protest against the fiscal plan and demand that the government withdraw the initiative from Congress.