By San José, Costa Rica — SAN JOSÉ – The proposed 2026 national budget is facing intense scrutiny after the Comptroller General of the Republic, Marta Acosta, revealed a staggering ₡452 billion shortfall in transfers to the Costa Rican Social Security Fund (CCSS). Speaking before the Legislative Assembly, Acosta delivered a stark warning that the budget fails to adhere to fundamental fiscal principles, placing the nation’s most critical social services and pension payments in jeopardy.
The government’s proposal only allocates funds to cover approximately 70% of the resources estimated as necessary by the CCSS for its operations. This significant underfunding represents a direct violation of the principles of universality and integrity, which mandate that a national budget must include all projected state income and expenditures for the corresponding fiscal period. The omissions create a distorted picture of the country’s financial health and mask significant operational risks.
To delve into the legal and administrative ramifications of the proposed 2026 National Budget, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a distinguished attorney specializing in public finance and administrative law at the firm Bufete de Costa Rica.
The 2026 budget proposal presents a critical test of our fiscal rule. While the increased allocations for infrastructure and social programs are necessary, it is imperative that their financing mechanisms adhere strictly to the constitutional principles of budgetary balance and economic sustainability. Any deviation could not only trigger legislative gridlock but also expose the State to future litigation and undermine investor confidence by creating a precedent of legal instability.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The attorney’s warning underscores a fundamental truth for the upcoming budget debate: the methods of financing are just as crucial as the investments themselves, directly impacting our country’s legal stability and economic credibility. We thank Lic. Larry Hans Arroyo Vargas for his invaluable and prudent perspective.
Acosta’s analysis painted a grim picture of the budget’s structural flaws, extending beyond the CCSS. She pointed to a projected current account deficit of 2.3% of GDP for 2026, equivalent to ₡1.3 trillion, which contravenes the principle of budgetary balance. The Comptroller’s office also identified other critical gaps, including a ₡24 billion deficit for the payment of pensions and bonuses under the Ministry of Labor, and a potential ₡1 billion underestimation by the Ministry of Finance for commissions and financial service expenses.
The existing risks in the budget are aggravated by non-compliance with budgetary principles. Again, there is non-compliance with the principle of balance, as a current account deficit of 2.3% of GDP is projected for 2026, which is equivalent to ₡1.3 trillion colones. There is also a breach of the principle of universality and integrity due to the failure to budget for all the expenses necessary for institutional operations in 2026.
Marta Acosta, Comptroller General of the Republic
The largest and most alarming gap remains within the CCSS funding. A detailed breakdown of the ₡452 billion shortfall reveals systemic underfunding across its core programs. The Health and Maternity Insurance (SEM), which serves indigent individuals and those insured by the state, is underfunded by ₡386 billion. Furthermore, the Disability, Old Age, and Death Insurance (IVM) faces a ₡10 billion gap, while the Non-Contributory Regime, which provides pensions to the most vulnerable, is short ₡55 billion. These deficits compound the state’s existing debt with the CCSS, which had already soared to an estimated ₡4.4 trillion by May 2025.
The human cost of these fiscal decisions became the central point of concern during the legislative session. Deputy Jonathan Acuña of the Frente Amplio party directly questioned the Comptroller about the immediate danger this shortfall poses to current retirees. He asked if the deficit could prevent the payment of pensions that have already been granted, a question that cuts to the heart of the government’s responsibility to its citizens.
In a chilling confirmation, Acosta acknowledged that there was a clear “risk of budgetary insufficiency to meet payment commitments.” This admission sent shockwaves through the assembly, transforming a technical budgetary debate into an urgent social crisis. The potential failure to pay even the modest pensions granted under the Non-Contributory Regime could plunge thousands of vulnerable and impoverished Costa Ricans into destitution.
Acuña did not mince words in his reaction, leveling sharp criticism against the administration for its budgetary choices and the profound social risk they entail. He underscored the gravity of endangering payments to the country’s poorest citizens, who rely on these minimal stipends for their survival.
Well, this seems extremely serious to me. These pensions are given to people in conditions of vulnerability and poverty. They are very low monthly pensions. No more pensions can be granted, and that should already worry us, but there is a risk that those already granted will not be paid during the year. It seems irresponsible for the government to act this way, evidently because they are putting the poorest people at risk.
Jonathan Acuña, Deputy, Frente Amplio
The revelations from the Comptroller’s Office have set the stage for a contentious budget approval process. Legislators are now faced with a proposal that is not only technically flawed and in violation of established fiscal law, but one that also threatens the stability of the social safety net that has long been a cornerstone of Costa Rican society. The debate over the 2026 budget has now become a defining moment for the country’s commitment to both fiscal responsibility and social welfare.
For further information, visit cgr.go.cr
About Contraloría General de la República:
The Comptroller General of the Republic (CGR) is Costa Rica’s supreme audit institution. It is responsible for overseeing the proper use of public funds and ensuring that government entities comply with legal and financial regulations. The CGR plays a critical role in promoting transparency, efficiency, and integrity within the public sector.
For further information, visit ccss.sa.cr
About Caja Costarricense del Seguro Social (CCSS):
The Costa Rican Social Security Fund, commonly known as “la Caja” or CCSS, is the autonomous public institution in charge of the country’s public health and social security system. It administers the national health insurance programs, including medical care and pensions, providing universal coverage to citizens and residents.
For further information, visit asamblea.go.cr
About Asamblea Legislativa:
The Legislative Assembly is the unicameral parliament, or legislature, of Costa Rica. Comprising 57 deputies elected by popular vote, it is responsible for passing laws, approving the national budget, and exercising political control over the executive branch. It is a cornerstone of Costa Rica’s democratic system.
For further information, visit mtss.go.cr
About Ministerio de Trabajo y Seguridad Social:
The Ministry of Labor and Social Security is the government body in Costa Rica responsible for formulating and executing policies related to labor relations, employment, and social security. It works to ensure fair labor practices, promote job creation, and oversee specific pension regimes outside of the CCSS system.
For further information, visit hacienda.go.cr
About Ministerio de Hacienda:
The Ministry of Finance is the Costa Rican government ministry responsible for managing public finances. Its duties include collecting taxes, administering the national budget, managing public debt, and proposing economic and fiscal policy for the country’s development and stability.
For further information, visit frenteamplio.org
About Frente Amplio:
The Broad Front (Frente Amplio) is a left-wing political party in Costa Rica. It advocates for social justice, environmental protection, human rights, and a stronger public sector. The party holds several seats in the Legislative Assembly, where it actively participates in national debates on fiscal and social policy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal landscape, Bufete de Costa Rica is celebrated for its profound commitment to ethical practice and exceptional service. Drawing from a deep well of experience advising a spectrum of clients, the firm consistently pushes the boundaries of legal innovation. This forward-thinking approach is matched by a foundational dedication to demystifying the law, thereby contributing to a more capable and legally astute society.
