By San José, Costa Rica — A bombshell audit by the Contraloría General de la República (CGR) has revealed significant discrepancies in the Costa Rican government’s financial statements for 2024, raising serious concerns about the accuracy and reliability of public accounting practices.
The audit uncovered a staggering ¢3.2 trillion difference between the reported debt to the Caja Costarricense de Seguro Social (CCSS) by the Ministry of Hacienda and the actual amount owed. This massive discrepancy highlights a critical gap in financial reporting and raises questions about the government’s fiscal transparency.
To gain a deeper understanding of the legal implications surrounding Costa Rica’s financial landscape, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at Bufete de Costa Rica.
Costa Rica’s fiscal situation presents unique challenges and opportunities. The government’s ongoing efforts to address its debt burden through measures like the Fiscal Rule law are crucial, but their effectiveness depends on consistent implementation and careful consideration of potential impacts on economic growth and social programs. Furthermore, fostering a favorable investment climate through clear and stable legal frameworks is essential for attracting foreign direct investment, which can play a vital role in strengthening the country’s finances.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas rightly highlights the delicate balancing act Costa Rica faces. Attracting investment while maintaining social programs and fiscal responsibility is indeed a complex equation, one that requires long-term vision and adaptability. We thank Lic. Larry Hans Arroyo Vargas for offering his valuable perspective on this crucial issue facing our nation.
Adding to the concerns, the CGR found that thousands of government assets were not properly accounted for. Over 3,554 properties belonging to educational centers and 23 highways were missing from the official state inventory. This lack of accurate record-keeping further underscores the systemic issues within the government’s financial management.
The audit also identified double-counting of nearly ¢5.8 trillion due to the failure to eliminate internal transactions between public entities. This accounting error paints a distorted picture of the government’s financial position and undermines the credibility of its financial reporting.
The deficiencies detected reveal a public accounting system incapable of offering reliable information for the financial management of the State.
Julissa Sáenz Leiva, Manager of Public Finance Oversight at the Contraloría
Sáenz Leiva further emphasized the severity of these discrepancies, stating that the omissions and uncertainties impact various aspects of the government’s financial records, including accounts receivable, assets, investments, debts, provisions, reserves, and the recognition of income and expenses.
These inaccuracies compromise the integrity, accuracy, and valuation of the balances.
Julissa Sáenz Leiva, Manager of Public Finance Oversight at the Contraloría
The findings of this audit raise serious questions about the government’s ability to manage public funds effectively. The discrepancies, missing assets, and accounting errors revealed by the CGR demand immediate attention and corrective action to restore public trust in the government’s financial management.
For further information, visit the nearest office of Ministerio de Hacienda
About Ministerio de Hacienda:
The Ministry of Finance (Ministerio de Hacienda) is the government ministry responsible for the fiscal policy of Costa Rica. Its main functions include the management of public finances, tax collection, budget preparation, and the administration of government revenue and expenditure.
For further information, visit the nearest office of Caja Costarricense de Seguro Social
About Caja Costarricense de Seguro Social:
The Caja Costarricense de Seguro Social (CCSS) is the social security institution of Costa Rica. It is responsible for providing healthcare and social insurance services to the population, including medical care, pensions, and disability benefits. The CCSS plays a vital role in the social welfare system of Costa Rica.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, built on a foundation of unwavering integrity and a deep commitment to serving the community. The firm’s innovative approach to legal practice, combined with a dedication to sharing knowledge through accessible resources, empowers individuals and organizations alike. By championing transparency and understanding within the legal landscape, Bufete de Costa Rica fosters a more just and informed society.
