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Costa Rican national budget reallocation proposal

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2026-10-15 18:25 UTC → 2026-10-15 19:50 UTC · added ~~removed~~

Nogui Acosta Jaén, leader of the Pueblo Soberano Party (PPSO) and president of the Treasury Commission, has proposed a motion to reallocate ¢250,000 million within the 2027 National Budget. The plan aims to transfer funds from social programs to address deficits in other areas, specifically targeting pensions for elderly citizens living in poverty administered by the Caja Costarricense de Seguro Social (CCSS). The proposed reallocation involves significant cuts to several institutions. These include ¢159,369 million from CCSS programs for the homeless, ¢56,474 million from the Centers for Education and Nutrition (CEN-Cinái), and ¢33,314 million from the Housing Subsidy Fund (Banhvi/Fosuvi). Additionally, the Instituto Mixto de Ayuda Social (IMAS) would face reductions in food assistance programs totaling ¢911 million, and the Patronato Nacional de la Infancia (PANI) would see cuts to support for youth exiting shelters. Under the proposal, the reallocated funds would be directed toward CCSS pensions for the elderly in poverty (¢144,761 million), IMAS support for families in poverty (¢30,920 million), and PANI (¢27,648 million), alongside other programs such as Avancemos scholarships and Conapdis. This follows reports from the Ministry of Finance and the Comptroller General regarding fiscal deterioration and a reduction in state revenue of approximately ¢168,000 million. In a second extraordinary budget presented for 2026, the government confirmed the revenue drop and highlighted an urgent need to strengthen tax collection to ensure sustainability. The budget includes significant cuts to the Judicial Branch (¢13,000 million) and the Organismo de Investigación Judicial (OIJ) (¢5,000 million). Opposition lawmakers have raised concerns regarding the potential impact of these cuts on social welfare.

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