Costa Rica fiscal austerity and budget reductions

Costa Rica is implementing austerity measures to manage rising public debt, which was projected to remain above 60% of the Gross Domestic Product (GDP) in 2026. To address these fiscal challenges, the government submitted a 2027 national budget proposal to Congress that outlines a 3.1% reduction in spending, totaling approximately 12.4 trillion colones ($27 billion USD).

These proposed budget regulations have created significant concerns for the country’s Judicial Power. The Judicial Power is slated to receive ¢530,973 million, an amount ¢10,552 million less than the 2026 budget. Officials have warned that these cuts could put 2,463 positions at risk, specifically targeting roles classified as “vacant” that are currently occupied by staff.

The Judicial Investigation Organism (OIJ) is particularly affected, facing the potential loss of 810 positions, including forensic doctors. Leadership at the OIJ warned that the loss of these professionals and a lack of funds for fuel, equipment, and per diems could “cripple investigations” and force the postponement of law enforcement operations.