The Secretary General of the Organization for Economic Co-operation and Development (OECD), Ángel Gurría, highlighted the public expenditure containment plan proposed by the new administration, while urging legislators to approve the draft Law on Strengthening Public Finance, in which the new taxes are contemplated.
This Monday, through a statement on the official website of this agency, Gurría said that the adopting the measures announced last Wednesday by the Minister of Finance Rocio Aguilar, and the tax plan will generate a balance between spending cuts and increases of tax revenues, which in his opinion will be positive for the country.
Gurría said the measures are bold and immediate and going in the right direction.
The secretary general recalled that in Costa Rica last year’s public deficit of 6.2% of gross domestic product (GDP) was the largest in the past 30 years and that as a result, public debt increased by 24% of GDP in 2008 to almost 50% of GDP in 2017.
If it is not contained, the rapid deterioration of public finances will jeopardize the sustainability of the debt, reduce private investment, and threaten the financial stability of Costa Rica,”
added Gurría.
With the plan to contain government spending, it is expected to save close to ₡ 49 billion annually, while with the fiscal plan it aims to raise ¢ 660,000 million annually.