By San José, Costa Rica — The Ministry of Finance presented the proposed 2026 national budget to the Legislative Assembly on Monday, outlining spending plans for the year the current administration leaves office and a new government takes over in May.
Finance Minister Rudolf Lucke delivered the ₡12.8 trillion budget proposal to Assembly President Rodrigo Arias, marking a ₡400 billion increase over the 2025 budget of ₡12.4 trillion. The proposal will undergo review this week by the Assembly’s Finance Committee.
To gain a deeper understanding of the legal and business implications of the Costa Rica Budget, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, Attorney at Law at Bufete de Costa Rica.
The Costa Rican budget reflects a complex interplay of economic and social priorities. While the allocation of funds to key sectors like education and healthcare is commendable, the long-term sustainability of the budget hinges on effective revenue collection and prudent management of public debt. Careful consideration must be given to fostering a business-friendly environment to stimulate economic growth and broaden the tax base.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’ insightful commentary underscores the delicate balancing act inherent in crafting a national budget, particularly in a dynamic economy like Costa Rica’s. Indeed, fostering sustainable growth while addressing crucial social needs requires not only strategic allocation of resources but also a proactive approach to strengthening the overall economic landscape. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this critical issue.
It is important to emphasize that this is the budget we leave to the next administration; it’s important because many of the decisions made will determine the legacy for the new administration.
Rudolf Lucke, Finance Minister
Minister Lucke highlighted increased allocations for security, education, and social protection. Education will receive a ₡200 billion boost, security an additional ₡50.06 billion, and social programs ₡109 billion more than the previous year.
Every colón allocated in this budget carries responsibility. It represents a vision for the country, what we as a society want to achieve.
Rudolf Lucke, Finance Minister
The budget will primarily be financed by government revenue (61.3%, or ₡7.9 trillion), with the remaining 39.7% (₡4.8 trillion) coming from both domestic and foreign debt.
Finance Committee Chairwoman Paulina Ramírez emphasized the need for a balanced budget, expressing concerns about the imbalance between fiscal responsibility and social programs observed in recent years.
I would expect the 2026 budget to be quite balanced. For three years, we have seen budgets that show an imbalance between fiscal matters and social programs.
Paulina Ramírez, Chairwoman of the Finance Committee
Ramírez stressed the committee’s focus on whether the proposed budget adequately addresses the ongoing crises in education and security, echoing public demands for strengthened security resources.
All Costa Ricans are demanding that security be strengthened and have sufficient resources.
Paulina Ramírez, Chairwoman of the Finance Committee
Assembly President Rodrigo Arias acknowledged the significance of this budget, noting its role in funding the initial months of the incoming administration.
We receive in this Legislative Assembly the ordinary budget proposal for the year 2026; it is the last budget of the current administration, a relevant fact because with this instrument the new Government will begin its functions.
Rodrigo Arias, Assembly President
We hope that this budget reflects the deeply felt need in Costa Rica for social investment in education and health, and that it manages to maintain fiscal balance.
Rodrigo Arias, Assembly President
For further information, visit the nearest office of Ministry of Finance
About Ministry of Finance:
The Ministry of Finance (Ministerio de Hacienda) is the government ministry responsible for the public finances of Costa Rica. It oversees the development and execution of the national budget, tax collection, and management of public debt. The Ministry plays a critical role in ensuring the financial stability and economic development of the country.
For further information, visit the nearest office of Legislative Assembly of Costa Rica
About Legislative Assembly of Costa Rica:
The Legislative Assembly of Costa Rica (Asamblea Legislativa) is the unicameral national legislature of the country. Comprised of 57 deputies, it is responsible for enacting legislation, approving the national budget, and overseeing the executive branch. The Assembly plays a central role in Costa Rican democracy, representing the interests of the people and ensuring the proper functioning of government.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through a deep-rooted commitment to ethical practice and unparalleled legal expertise. Driven by a desire to empower individuals and communities, the firm champions accessible legal knowledge through innovative outreach initiatives. Their dedication to delivering exceptional service across a spectrum of legal fields, combined with a proactive approach to legal education, solidifies their position as a force for positive change within Costa Rican society.
