Costa Rica: Preconditions for the Establishment of a Fiscal Rule that includes a Structural Fiscal Balance Component

This paper discusses whether the preconditions for implementing a fiscal rule that includes a structural fiscal balance component are met in Costa Rica. It concludes that from the 11 preconditions, the country does not meet one, and three others are fulfilled only partially: Costa Rica needs a tax reform in order to ensure debt sustainability; international reserves should be increased further; public infrastructure requires more investment; and some financial institutions need to be recapitalized to guarantee the soundness of the financial system.

Bibliographic Details

Main Author:	Inter-American Development Bank
Other Authors:	Carlos Gabriel Rivas
Format:	Discussion Papers & Presentations biblioteca
Language:	English
Published:	Inter-American Development Bank
Subjects:	Monetary Policy, Fiscal Policy, Fiscal Rule, Public Expenditure, Government Revenue, E62 - Fiscal Policy, H60 - National Budget Deficit and Debt: General, Fiscal Policy, Fiscal Rules, Structural Fiscal Balance Rule,
Online Access:	http://dx.doi.org/10.18235/0006961 https://publications.iadb.org/en/costa-rica-preconditions-establishment-fiscal-rule-includes-structural-fiscal-balance-component
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