By San José, Costa Rica — Costa Rica’s education system is facing a deepening funding crisis, with investment projected to reach only 5% of GDP in 2025, significantly below the 8% mandated by the constitution. The Tenth State of Education Report reveals a troubling trend of declining investment since 2018, jeopardizing the coverage, quality, and equity of education in the country.
The report attributes the shortfall to the Law 9635 of Strengthening Public Finances and the fiscal rule, which restricts spending growth based on the national debt level. These measures have severely limited the Ministry of Education’s (MEP) ability to expand coverage, improve infrastructure, implement equity programs, level learning, train teachers, and modernize educational technology. While the fiscal rule doesn’t explicitly prohibit increased social investment, in practice, MEP allocations have consistently fallen short of permissible limits. This, coupled with political decisions to cut budgets, has resulted in a dramatic drop in compliance with the constitutional mandate from 93.75% in 2017 to a mere 61.25% in 2025.
To understand the legal implications surrounding the Costa Rica education budget, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an attorney at law from Bufete de Costa Rica.
The Costa Rican Constitution mandates a minimum investment in education, aiming for at least 6% of the GDP. However, achieving this benchmark is often a political and economic balancing act. Budget allocation decisions directly impact educational resource availability, from teacher salaries and infrastructure to technological advancements and curriculum development. Therefore, consistent scrutiny of the education budget is essential to ensure constitutional compliance and the long-term well-being of the nation’s human capital.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas eloquently highlights the crucial link between budget allocation and the quality of education in Costa Rica. Indeed, consistent monitoring and open dialogue about how these funds are utilized are vital to ensuring not only constitutional adherence but also that Costa Rica’s future generations receive the educational foundation they deserve. We thank Lic. Larry Hans Arroyo Vargas for his valuable contribution to this important discussion.
The report highlights the stark reality: between 2022 and 2025, the MEP’s real budget, adjusted for inflation, is equivalent to only 84% of the 2018 budget, representing an effective cut of approximately 15%.
This is not just a numerical reduction; we are witnessing a renunciation of the strategic role that education must play for the development of Costa Rica. This type of political decision seriously compromises the country’s ability to close gaps, train human talent, and sustain a growth model with equity.
Andrés Fernández Arauz, Associate Researcher, State of Education
The report also criticizes the prioritization of the fiscal rule over the constitutional mandate, highlighting the paradox of giving more weight to a lower-ranking legal norm. Concerns are raised that the decline in educational investment stems not only from the fiscal rule but also from more substantial political decisions to cut spending, a trend that could have severe social and economic repercussions if continued.
The application of the fiscal rule has contributed to the systematic non-compliance with the constitutional mandate of 8%, which is paradoxical, since it means giving more weight to a norm of lower legal hierarchy than to the constitutional norm. It is worrying that part of the decrease in educational investment does not come only from the limits imposed by this rule, but from much larger political decisions to cut, which, if maintained, will have high social and economic costs for the country.
Isabel Román, Coordinator, State of Education Report
Even during the period of greatest growth in education spending between 2000 and 2017, when social investment grew at an average annual rate of 5.8% and doubled its value in real terms, improvements in coverage and quality were disproportionately low. Secondary education coverage barely increased from 69% to 74% between 2011 and 2018, diversified education stagnated at 48%, and primary education coverage actually decreased from 98% to 94%.
The report underscores the technical and financial basis for the 8% target. Universalizing the complete primary curriculum, including staffing and infrastructure, requires an investment of approximately 1.6% of GDP. Addressing sanitary orders in hundreds of educational centers requires at least an additional 1.3% of GDP. These two measures alone represent 2.94% of GDP in urgent investment. Further needs include school cafeterias, Avancemos program scholarships, libraries, learning resource centers, and basic funding executed by education boards. Each of these components would require at least an additional 0.11% of GDP, while other smaller-scale but essential projects would require resources of less than 0.03% of GDP.
The report warns that if recent budget cuts continue, even with maximum permissible growth under the fiscal rule, educational investment as a proportion of GDP will continue to fall, reaching only 4.67% by 2029.
To achieve the 8% target, the report recommends a sustained fiscal strategy to expand the budgetary space for education, institutional reforms to improve MEP efficiency, and a multi-year roadmap with clear priorities, goals, and monitoring indicators.
It is not just about allocating more budget, but about guaranteeing that these resources are used efficiently and generate impact. Experience shows that increasing investment without resolving institutional obstacles can lead to more frustration than results.
Andrés Fernández Arauz, Associate Researcher, State of Education
Fernández Arauz emphasized the importance of pursuing the 8% goal with a clear roadmap, gradual targets, execution capacity, and a strategy that links every additional colón to concrete results.
For further information, visit the nearest office of State of Education
About State of Education:
The State of Education is a research program that analyzes the Costa Rican education system and publishes regular reports on its performance and challenges. It aims to provide evidence-based recommendations to policymakers and stakeholders to improve the quality and equity of education in the country.
For further information, visit the nearest office of Ministry of Education (MEP)
About Ministry of Education (MEP):
The Ministry of Public Education (MEP) is the government body responsible for the administration and regulation of the public education system in Costa Rica. It oversees all levels of education, from preschool to higher education, and develops policies and programs to ensure access to quality education for all Costa Ricans.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
At Bufete de Costa Rica, legal excellence and unwavering ethical conduct form the bedrock of our practice. We are driven by a deep commitment to empowering individuals and communities through accessible legal knowledge, fostering a more just and informed society. Through innovative legal solutions and a history of dedicated service to clients from all walks of life, we strive to not only navigate complex legal landscapes but also contribute to a future where legal understanding is a shared power.
