Implementation of the fiscal rule in Costa Rica

 

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Autores: Conejo Fernández, Carlos, Cardoza Rodríguez, David
Formato: artículo original
Estado:Versión publicada
Fecha de Publicación:2020
Descripción:As a consequence of the increasing deterioration of public finances in the last ten years, Costa Rica approved a fiscal rule that links growth of public spending with growth of national production and level of public debt. The rule was implemented in 2020. The objective of this article is to highlight the risk of adverse results if the fiscal rule restricts public expenditure excessively. Regarding the verification of compliance with the fiscal rule, according to the Ministry of Treasury the budget formulated for the respective year should be used as a parameter, while according to the Comptroller General of the Republic what must be used is the budget effectively executed by each of the public entities. A simple linear simulation model is applied here to calculate the possible trends that public spending will follow when using each of the indicated parameters for verification. It is concluded that a very restrictive interpretation of the fiscal rule could generate unwanted results. In addition, it is pointed out that with the health emergency caused by the Coronavirus, the fiscal rule rather restricts the government’s freedom when greater flexibility is needed to manage the fiscal policy.
País:Portal de Revistas UNA
Institución:Universidad Nacional de Costa Rica
Repositorio:Portal de Revistas UNA
Lenguaje:Español
OAI Identifier:oai:ojs.www.una.ac.cr:article/14124
Acceso en línea:https://www.revistas.una.ac.cr/index.php/economia/article/view/14124
Access Level:acceso abierto
Palabra clave:fiscal deficit
fiscal policy
public debt
public finances
coronavirus
déficit fiscal
política fiscal
deuda pública
finanzas públicas
Coronavirus
politica fiscal
dívida pública
Finanças publicas
Coronavírus