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Debt service will crush growth in Costa Rican budget

Thursday, November 22, 2018


Servicing the nation's debt will be the main challenge facing Costa Rica's government for next year, when it will amount to almost half of the budget.

In order to meet public-service salaries, pensions and debt payments, the government will have got to spend some 53.5 percent of its income.

Income from taxes will cover only 46.5 percent. What that means is that for every $100 it receives, it will have to borrow $115.
The government's debt for 2019 will be double what it was a decade ago in terms of the value of the nation's output.