In the first 7 months of 2012 revenue increased by 11.3%, but government spending continues to increase at a rate of 9.6% growth, just below the 10.4% recorded in the same period in 2011.

A statement from the Ministry of Finance of Costa Rica reads:

-The fiscal deficit persists despite efforts to increase revenue and reduce expenses.

-Eurobonds are still a necessary source of funding.

Tax revenues continued to grow steadily in July, supported mainly on the strength of the income tax and general sales tax. In the first seven months of the year tax revenues increased by 11.3% compared to the same period last year, while revenue from income tax and sales tax grew by 13.4% and 14%.

On the other hand, central government expenditure through July, is slowing down, with growth of 9.6% compared to the same period in 2011. This slowdown is despite strong growth in current transfers to the public sector (10.2%), mainly explained by the resources transferred to the Social Security Department throughout the year. In contrast, the category of salaries is under control with a growth of 8.8%, reflecting the conservative increase in public wages the first half of the year.