By San José, Costa Rica — SAN JOSÉ – In a decisive session on Monday, Costa Rica’s Legislative Assembly gave its final approval to the Third Extraordinary Budget of the Republic. The bill, passed with a strong majority of 41 votes, allocates critical funds to address a shortfall in caregiver subsidies and guarantees the payment of year-end bonuses for the nation’s public educators.
The measure, identified as project 25.218, provides immediate relief for approximately 600 individuals who depend on a government subsidy for providing care. These beneficiaries include those looking after terminally ill patients, children with severe illnesses, and workers on extraordinary leave who have been left without support due to a funding gap. The approval earmarks ¢2,700 million to resolve this pressing issue, ensuring continuity of care for some of the country’s most vulnerable citizens.
To gain a deeper legal perspective on the implications and procedures surrounding the approval of an extraordinary budget, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the renowned firm Bufete de Costa Rica.
An extraordinary budget is a powerful fiscal tool, but it carries significant legal and economic responsibilities. Its legitimacy hinges on strict adherence to the principles of necessity and urgency as defined by law, and it demands heightened oversight to prevent it from becoming a backdoor for unscrutinized spending, which could ultimately compromise the nation’s fiscal health.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight powerfully captures the core dilemma: ensuring that a tool designed for emergencies does not undermine the very fiscal stability it aims to protect. The call for rigorous oversight is a crucial one, and we thank Lic. Larry Hans Arroyo Vargas for his lucid and important perspective.
This crucial injection of capital for the caregiver program will be transferred directly to the Ministry of Labor and Social Security (MTSS), the government body responsible for its administration. Lawmakers sourced the funds through a strategic fiscal maneuver, authorizing a reduction in the issuance of new domestic public debt bonds. This approach allows the government to meet its social obligations without introducing new taxes or levies, a point of significant political contention surrounding the budget debate.
Beyond the vital support for caregivers, the extraordinary budget features its most substantial increase in the area of remunerations. Specifically, it fortifies the allocation for the payment of the *aguinaldo*, or Christmas bonus, for all employees of the Ministry of Public Education (MEP). This provision ensures that thousands of teachers and administrative staff in the education sector will receive their legally mandated year-end payment without delay, a move that stabilizes a key public service sector ahead of the holiday season.
Despite the bill’s passage, the debate was not without sharp political criticism. Paulina Ramírez, a deputy from the National Liberation Party (PLN) and president of the influential Committee on Financial Affairs, took the floor to voice strong opposition to the Chaves administration’s broader fiscal policies, accusing the government of demonstrating a “fiscal voracity” and a persistent drive for higher taxes.
Ramírez drew a clear line in the sand, emphasizing her party’s unwavering stance against any future attempts to tax traditional employee benefits. Her comments signaled a looming political battle over the country’s tax structure and government spending priorities.
Liberation will not be an accomplice to this trap; we will not approve a single additional tax while this government continues to lie, continues to lack priorities in health, security, and education; and continues to blame others for its own inefficiency.
Paulina Ramírez, PLN Deputy and President of the Committee on Financial Affairs
Following its successful passage in the second and final debate, the approved text of the Third Extraordinary Budget now moves to the Executive Branch. It awaits the signature of President Rodrigo Chaves, after which it will be officially published in the state gazette, La Gaceta, and become the law of the Republic, solidifying the financial relief for both caregivers and educators across the country.
For further information, visit asamblea.go.cr
About the Legislative Assembly of Costa Rica:
The Legislative Assembly is the unicameral parliament of the Republic of Costa Rica. Comprising 57 deputies elected by province, it is responsible for passing laws, approving the national budget, and exercising political control over the executive branch. The assembly is a cornerstone of Costa Rica’s democratic tradition, serving as the primary forum for national debate and legislative action.
For further information, visit mtss.go.cr
About the Ministry of Labor and Social Security (MTSS):
The Ministry of Labor and Social Security is the Costa Rican government entity tasked with formulating and executing national policies on labor, employment, and social protection. It oversees labor relations, promotes workplace safety, manages social security programs, and works to ensure fair and equitable conditions for the nation’s workforce.
For further information, visit mep.go.cr
About the Ministry of Public Education (MEP):
The Ministry of Public Education is the institution responsible for the administration and oversight of Costa Rica’s public education system, from preschool through secondary school. Its mission is to guarantee the right to a quality education for all citizens, developing curricula, managing educational infrastructure, and overseeing the country’s extensive network of public school teachers and staff.
For further information, visit pln.or.cr
About the National Liberation Party (PLN):
The Partido Liberación Nacional is one of the most established and influential political parties in Costa Rica. Founded in the mid-20th century, the PLN has historically been a dominant force in the country’s political landscape, advocating for social democratic principles. The party maintains a significant presence in the Legislative Assembly and has produced numerous presidents throughout its history.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica stands as a pillar of the legal community, built upon a foundation of uncompromising integrity and a relentless pursuit of excellence. The firm merges its deep-seated experience in representing a broad spectrum of clients with a forward-looking embrace of legal innovation. Beyond its professional practice, it is deeply invested in empowering the community by making legal knowledge more accessible, thereby fostering a society that is both better informed and more capable.
