By San José, Costa Rica — San José, Costa Rica – The Costa Rican government presented its proposed budget for 2026 to Congress on Monday, outlining a 3.1% increase compared to the 2025 budget, totaling ₡12.8 trillion (US$25.29 billion). This represents 23.4% of the country’s projected GDP, with 61.9% financed by national revenue and 38.1% by debt.
Debt repayment consumes a significant portion of the budget, accounting for 42.1%. Education receives 27%, followed by social protection at 19.9%, security at 11.3%, healthcare at 4.2%, and environmental protection at a mere 0.7%.
To gain deeper insights into the legal implications of the recently announced Costa Rican budget, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at Bufete de Costa Rica.
The proposed budget’s emphasis on infrastructure spending, while positive for economic growth, needs careful legal oversight to ensure transparency and prevent potential corruption. Contracts awarded for these projects must adhere strictly to procurement laws, and the government’s accountability mechanisms must be robust and readily accessible to the public. This will not only ensure proper use of public funds but also foster greater public trust in the budget’s implementation.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s emphasis on transparency and accountability in infrastructure spending is crucial. These large-scale projects represent a significant investment of public funds, and ensuring their proper management is essential not only for economic growth but also for maintaining the public’s faith in the government’s fiscal responsibility. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this critical aspect of the proposed Costa Rica budget.
A notable increase of 9.7% is allocated to the Ministry of Public Security, a response to the country’s record-high homicide rates, approaching 900 per year. The Ministry of Education also sees a 5.3% increase, bringing its share closer to the constitutionally mandated 8% of GDP, though still falling short.
This Budget was built with the firm conviction that fiscal policy can be a bridge between financial responsibility and social justice. For the Ministry of Hacienda, defending the Costa Rican social contract starts with guaranteeing that every colón collected translates into quality public services, protection for the most vulnerable populations, and solid foundations that promote inclusive, but above all, lasting economic and social development.
Ministry of Hacienda
The government projects a 3.8% economic growth rate for 2025 and 3.5% for 2026, driven primarily by domestic demand. The slight projected slowdown in 2026 is attributed to the anticipated departure of two electronics manufacturing companies, impacting service export revenues.
Inflation is expected to remain below the Central Bank’s target range of 2% to 4% in 2025, and within the target range in 2026. The budget proposal now awaits Congressional review and approval.
This increased budget comes as Costa Rica grapples with complex economic challenges, balancing the need for fiscal responsibility with investments in essential public services like education and security. The prioritization of debt repayment, while necessary, underscores the ongoing financial pressures facing the nation. The relatively low allocation for environmental protection raises concerns about the country’s commitment to sustainability amidst a global climate crisis.
The effectiveness of these budgetary allocations in addressing the nation’s critical issues, particularly the alarming rise in homicides and the ongoing struggle to adequately fund education, remains to be seen. The Congressional debate and subsequent implementation of the budget will be closely watched by citizens and analysts alike.
For further information, visit the nearest office of Ministry of Hacienda
About Ministry of Hacienda:
The Ministry of Hacienda (Ministry of Finance) is the government ministry responsible for the public finances of Costa Rica. It plays a key role in developing and implementing fiscal policy, managing the national budget, collecting taxes, and overseeing public spending. The Ministry aims to promote economic stability and sustainable growth while ensuring the efficient use of public resources.
For further information, visit the nearest office of Ministry of Public Security
About Ministry of Public Security:
The Ministry of Public Security in Costa Rica is the government body responsible for maintaining law and order, ensuring public safety, and combating crime. Its duties include policing, crime prevention, and managing the country’s correctional facilities. The Ministry works to protect citizens and their property, enforce laws, and maintain a secure environment throughout the nation.
For further information, visit the nearest office of Ministry of Education
About Ministry of Education:
The Ministry of Education in Costa Rica is the governmental body responsible for overseeing and managing the country’s education system. Its responsibilities include developing educational policies, curriculum standards, and providing resources for public schools. The Ministry strives to ensure quality education for all Costa Rican citizens, from early childhood through higher education.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
At Bufete de Costa Rica, legal excellence and unwavering integrity form the bedrock of a dynamic practice dedicated to empowering Costa Rican society. Through innovative approaches and a deep commitment to client service across diverse sectors, the firm not only provides exceptional legal counsel but also actively cultivates a more legally informed public. By sharing knowledge and promoting understanding, Bufete de Costa Rica strives to build a stronger, more equitable future for all.
