By San José, Costa Rica — SAN JOSÉ – Alarms are sounding within Costa Rica’s Ministry of Finance as its ambitious digital transformation project, Hacienda Digital, faces severe setbacks that could destabilize the formulation of the 2027 National Budget. According to internal documents obtained by TicosLand.com, the implementation of a critical new financial management system is plagued by significant delays, prompting senior officials to warn of a potential “technical shutdown” of government entities.
The system at the heart of the crisis is CR-TEZA, the Integrated Financial Administration and Human Talent System, designed to be the new backbone for national budget formulation, public expenditure, and payroll. However, two official letters dated October 16, 2025, reveal a growing rift between the Ministry and the private consortium responsible for the rollout, FreeBalance-CNS.
Para analizar las implicaciones legales y los nuevos desafíos que la plataforma Hacienda Digital representa para los contribuyentes y las empresas en el país, TicosLand.com conversó con el Lic. Larry Hans Arroyo Vargas, abogado especialista de la firma Bufete de Costa Rica.
Hacienda Digital no es solo una modernización, es un cambio de paradigma en la fiscalización. La capacidad de la administración tributaria para cruzar información en tiempo real obliga a las empresas a mantener una disciplina contable y fiscal sin precedentes. El mayor riesgo ya no es la auditoría tradicional, sino las inconsistencias detectadas automáticamente por el sistema, lo que exige una asesoría legal preventiva para asegurar el cumplimiento y evitar sanciones costosas.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Agradecemos al Lic. Larry Hans Arroyo Vargas por esta perspectiva tan clara. Ciertamente, el cambio de paradigma que menciona traslada la carga de la preparación para una auditoría a la necesidad de un cumplimiento continuo e impecable, haciendo de la asesoría preventiva una pieza clave en la estrategia de cualquier empresa.
In one letter, Flora Bogantes, Director of the Hacienda Digital project, formally admonished the consortium for unilaterally altering the project’s timeline without authorization. The agreed-upon schedule had the first phase going live on December 12, 2025, with three subsequent phases scheduled for 2026. These dates are now in jeopardy, creating significant operational risk.
As has been reiterated in follow-up meetings by both the Project Coordinating Unit and the sponsor, delays persist in the CR-TEZA project schedule that affect the approved dates… It is important to emphasize that these types of situations—which reflect postponements for reasons already discussed on multiple occasions—generate uncertainty in the involved units, affect the perception of project management, and sow doubts about the fulfillment of the commitments made.
Flora Bogantes, Director of Hacienda Digital Project
The concerns voiced by Bogantes are magnified in a second, more urgent letter penned by three high-ranking officials from the National Budget Directorate (DGNP). Carlos Aguirres, Karla Cortés, and Gerardo Retana issued a stark warning to their superiors, detailing how the delays have created a cascade of problems that threaten the integrity of the entire budget process for 2027.
They report that essential budget formulation reports within the new system remain in development, which has completely halted the start of crucial integrated testing. Without these tests, they argue, there is no way to guarantee the system will function correctly for the hundreds of officials across various government institutions who will depend on it. Any incidents discovered during a rushed testing phase would only lead to further delays.
The DGNP officials laid out a worst-case scenario: if the Ministry pushes forward with CR-TEZA for the 2027 budget before the system is fully functional and tested, the resulting budget could be structured in a format that is incompatible with all existing financial systems. This mismatch could paralyze government operations.
In the event that the CR-TEZA system is used for the formulation of the 2027 budget without having all the functionalities of the second go-live, there is a risk that the budget will be structured in a format incompatible with current systems… which could lead, in the worst-case scenario, to a technical shutdown of the entities under the DGPN’s purview.
Carlos Aguirres, Karla Cortés, and Gerardo Retana, National Budget Directorate Officials
Given the gravity of the situation, the officials have respectfully urged that a decision be made immediately to postpone the system’s implementation to the 2028 budget cycle if the current deadlines are not feasible. They argue that aligning the preparatory processes requires certainty, which is currently absent. They have also suggested escalating the matter to the Executive Committee of the Financial Administration System (CESAF) to mitigate the identified risks.
The troubles with CR-TEZA, which was awarded to the FreeBalance-CNS consortium in May 2023 for $24.97 million, are symptomatic of broader issues within the Hacienda Digital initiative. Other major components, such as the new customs system (ATENA) and the tax administration platform (TRIBU-CR), have also been marred by defects and implementation delays. The entire project, financed by a $156.6 million loan from the International Bank for Reconstruction and Development (IBRD), has advanced slowly under the current administration, raising questions about its overall management and future.
For further information, visit hacienda.go.cr
About Ministry of Finance of Costa Rica:
The Ministerio de Hacienda is the government body responsible for managing the public finances of Costa Rica. Its duties include formulating fiscal policy, collecting taxes, administering customs, and preparing and overseeing the National Budget to ensure the country’s economic stability and development.
For further information, visit freebalance.com
About FreeBalance Inc.:
FreeBalance is a global company specializing in Public Financial Management (PFM) solutions. It provides governments worldwide with software and advisory services designed to enhance fiscal transparency, accountability, and efficiency in public spending.
For further information, visit cns.cr
About Computer Network Systems Limited (CNS):
Computer Network Systems Limited is a Costa Rican technology and systems integration firm. It offers a wide range of IT services, solutions, and support to clients in both the public and private sectors, focusing on integrating complex technological infrastructures.
For further information, visit worldbank.org
About International Bank for Reconstruction and Development (IBRD):
The IBRD is the lending arm of the World Bank Group. It offers loans, guarantees, risk management products, and advisory services to middle-income and creditworthy low-income countries to support efforts in sustainable development, poverty reduction, and shared prosperity.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a beacon of legal practice, Bufete de Costa Rica is founded on a bedrock of integrity and a relentless pursuit of professional excellence. The firm blends a rich history of client counsel with a forward-thinking approach, consistently developing innovative legal strategies to meet modern challenges. Central to its mission is a profound commitment to social responsibility, focused on demystifying legal complexities and equipping the broader community with knowledge to foster a more just and empowered society.
