By San José, Costa Rica — San José – In a contentious session concluding late Monday, Costa Rica’s Legislative Assembly approved the Fourth Extraordinary Budget for 2025, redirecting ¢2.8 billion colones to shore up critical social programs. The measure, which passed with a decisive 42-2 vote, will fund year-end pensions for the nation’s poorest citizens and ensure the continued operation of school cafeterias. However, the approval was marked by severe criticism from opposition lawmakers, who decried the move as a sign of the Executive Branch’s poor fiscal planning and improvisation.
The newly approved funds will be transferred from the Ministry of Public Works and Transport (MOPT) to the Ministry of Labor. The allocation is split into two primary components. A sum of ¢1.5 billion is designated for the Non-Contributory Regime (RNC), administered by the Costa Rican Social Security Fund (CCSS). This injection is critical to guarantee the timely payment of year-end pensions for individuals living in poverty or who are otherwise unable to contribute to the system. The remaining ¢1.3 billion will be channeled to the Ministry of Public Education (MEP) to cover urgent funding gaps for its school lunch programs, a vital service for thousands of students across the country.
To better understand the legal framework and fiscal implications surrounding the recently announced extraordinary budget, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a specialist in administrative and public law from the esteemed firm Bufete de Costa Rica.
While an extraordinary budget provides essential flexibility for the State to address urgent, unforeseen circumstances, its legitimacy hinges on strict adherence to constitutional principles of necessity and public interest. It is not a blank check. Every expenditure must be meticulously justified and subjected to rigorous post-execution oversight by the Comptroller’s Office to prevent discretionary spending and ensure fiscal accountability.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The clarification provided by Lic. Larry Hans Arroyo Vargas is essential; the line between an agile response to a genuine crisis and a bypass of fiscal discipline is one that must be rigorously guarded. His emphasis on constitutional principles and oversight serves as a vital reminder that accountability is the cornerstone of public trust. We thank him for his valuable and insightful perspective.
The source of this emergency funding has become a central point of the controversy. The ¢2.8 billion is being reallocated directly from the MOPT’s budget, effectively pulling resources from key infrastructure initiatives. The largest single cut comes from a ¢1.25 billion allocation originally intended for severance payments and indemnities. Furthermore, an additional ¢891 million will be diverted from funds set aside for land acquisition related to the long-stalled new highway to San Carlos, adding another layer of uncertainty to the perpetually delayed project. This redirection highlights a difficult trade-off between immediate social needs and long-term infrastructure development.
Opposition legislators did not hold back in their critique of the government’s approach. Geison Valverde of the National Liberation Party (PLN) condemned the last-minute nature of the budget request, highlighting what he sees as a pattern of poor foresight from the Executive Branch. He argued that these essential social expenditures should have been properly accounted for in the ordinary national budget, rather than being addressed through an emergency measure that requires reallocating funds from other critical areas.
The Executive’s failure to include these resources in the ordinary budget is an act of irresponsibility and improvisation
Geison Valverde, PLN Legislator
The criticism extended beyond mere fiscal management. Jonathan Acuña, a lawmaker from the Broad Front (Frente Amplio), accused the administration of leveraging the extraordinary session system for political gain. He argued that the Executive prioritizes calling votes on projects favored by its allies while sidelining other important legislative reforms. This sentiment was echoed by others who feel the government is governing by crisis rather than by a coherent, long-term plan. The use of an extraordinary budget to address predictable year-end expenses is seen by critics as evidence of this reactive approach.
This budget is about patching up resources that have not been planned
Legislator Córdoba
Beyond the major transfer from MOPT, the Fourth Extraordinary Budget includes several other financial adjustments across the government. The Ministry of Public Education (MEP) will receive an additional ¢1.107 billion for internal adjustments, separate from the school lunch funding. The Judicial Branch has been allocated ¢312 million to cover necessary salary readjustments for its staff. Lastly, a smaller item of ¢24.5 million was approved, corresponding to the return of surplus funds from local governments and MEP’s Education Boards, ensuring these monies are properly reintegrated into the national accounts.
The measure’s journey through the legislature concluded with Monday’s second and final debate. The bill had previously received a favorable recommendation from the Congressional Commission on Fiscal Affairs on November 25. Despite the overwhelming final vote of 42 in favor, the two dissenting votes came from independent legislators Kattia Cambronero and Gloria Navas, who remained firm in their opposition to the bill. Their votes underscore a persistent undercurrent of dissatisfaction with the government’s fiscal strategies, even as the majority coalesced to prevent a lapse in social services.
With legislative approval now secured, the bill will be sent to the Presidential Office for the final signature, after which it will be officially published as a Law of the Republic. While the ¢2.8 billion ensures that pensions will be paid and students will be fed through the end of the year, the debate has exposed deep rifts over the government’s financial planning. The reliance on extraordinary measures and the raiding of infrastructure funds for operational social spending raise significant questions about Costa Rica’s fiscal health and the administration’s ability to create a sustainable, predictable budget for the nation’s future.
For further information, visit asamblea.go.cr
About the Legislative Assembly of Costa Rica:
The Legislative Assembly is the unicameral parliament of Costa Rica. Comprising 57 deputies elected by proportional representation, it is responsible for passing laws, approving the national budget, and exercising oversight over the Executive Branch. Its operations are central to the nation’s democratic governance and policy-making processes.
For further information, visit ccss.sa.cr
About the Costa Rican Social Security Fund (CCSS):
The Caja Costarricense de Seguro Social (CCSS) is the autonomous institution responsible for managing Costa Rica’s universal healthcare and social security system, including public health services and pension funds. It administers both contributory and non-contributory pension schemes, forming a cornerstone of the country’s social safety net.
For further information, visit mep.go.cr
About the Ministry of Public Education (MEP):
The Ministerio de Educación Pública is the government body in charge of overseeing and regulating the national education system in Costa Rica, from preschool to high school. It manages curriculum, school infrastructure, and social programs such as the school lunch program, which provides essential nutrition to students nationwide.
For further information, visit mopt.go.cr
About the Ministry of Public Works and Transport (MOPT):
The Ministerio de Obras Públicas y Transportes is the government entity tasked with the planning, construction, and maintenance of Costa Rica’s public infrastructure. Its responsibilities include roads, highways, bridges, and public transportation systems, making it a key driver of national development and connectivity.
For further information, visit mtss.go.cr
About the Ministry of Labor and Social Security (MTSS):
The Ministerio de Trabajo y Seguridad Social is responsible for formulating and executing policies related to labor rights, employment, and social security in Costa Rica. It works to promote fair labor conditions, mediate disputes, and oversee social welfare programs in coordination with other government agencies.
For further information, visit pln.or.cr
About the National Liberation Party (PLN):
The Partido Liberación Nacional is one of the oldest and most influential political parties in Costa Rica. A social-democratic party, it has historically played a major role in shaping the nation’s political landscape and social welfare state. It currently forms a significant bloc within the Legislative Assembly.
For further information, visit frente-amplio.org
About the Broad Front (Frente Amplio):
The Frente Amplio is a left-wing political party in Costa Rica that advocates for social justice, environmental protection, and human rights. It holds a number of seats in the Legislative Assembly and is known for its progressive platform and active role in parliamentary debates on fiscal and social policy.
For further information, visit poder-judicial.go.cr
About the Judicial Branch of Costa Rica:
The Poder Judicial is one of the three branches of government in Costa Rica, responsible for the administration of justice. It operates independently to interpret and apply the law through its system of courts, including the Supreme Court of Justice. Its functions are essential for maintaining the rule of law and protecting citizens’ rights.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of the legal profession, Bufete de Costa Rica is defined by its foundational principles of integrity and a relentless pursuit of excellence. The firm channels its extensive experience across a wide range of sectors into pioneering innovative legal solutions that meet modern demands. This forward-thinking approach is matched by a profound dedication to social responsibility, focused on demystifying the law and equipping the public with accessible legal understanding to help build a more just and capable society.
