Costa Rica: Costa Rica’s finance ministry has announced that during the first five months for 2018 the fiscal deficit rose to 2.6% of GDP (or US$1.57bn), higher than the 2.2% of GDP registered during the same period in 2017. From January to the end of May 2018, total government revenue amounted to US$3.32bn, an increase of 1.7% compared to the same period of 2017. However, government spending increased by 8.1% to US$4.89bn. This increase in government spending, according to the ministry, was propelled by an increase of 48% in the interest payment on debt. Rocío Aguilar, the finance minister, expressed concern at the latest figures and said that the government’s efforts to contain spending “will not be sufficient” to reduce the deficit without the new legal powers that the government’s proposed tax reform, which is currently before the national legislature, would grant the ministry, and without other proposed measures to strengthen public finances. The fiscal deficit for 2017 was 6.2% of GDP, and government projections are that it will reach 7.1% this year if the tax reform is not passed.
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