As of the signing of the law, that institution functions are absorbed by the Institute of Social Assistance, IMAS.
- Fonabe and A.M. Costa Rica illustrative photo -
Published Wednesday, September 23, 2020
Closing of the National Scholarship
Fund will save $1.6 million,
By the A.M. Costa Rica staff
President Carlos Alvarado signed Law No. 9903 that closes the National Scholarship Fund, Fonabe, which would generate savings of approximately $1,673,963.
Fonabe was an institution that provides financial aid to low-income students' families, allowing scholars to continue studying. As of the signing of the law, that institution functions are absorbed by the Institute of Social Assistance, IMAS.
The law was approved by Congress in June, eliminating duplication of institutional functions. In other words, the work carried out in Fonabe could also be carried out by IMAS.
In this way, the IMAS will be the institution that will be responsible for managing the transfers of scholarships to students.
"The law that Fonabe closes today is an unequivocal sign of the determination of this government to continue reforming the State institutions, to better serve the people, reduce costs and be more efficient," President Alvarado said.
In 2019, the Ministry of National Planning, Mideplan, announced that it was in the process of analyzing the usefulness, management and effectiveness of at least 76 public institutions.
For example, the National Environmental Technical Secretariat (Setena) and the National System of Conservation Areas (Sinac), both provide services to the Ministry of the Environment.
As well as the Road Safety Council (Cosevi) or the Public Transport Council (CTP), both provide services to the Minister of Public Transport.
The Mideplan study will determine if its operation is really necessary, or if duplication of functions is confirmed, the institution could be subject to a restructuring process or even closure.
Should the government speed-up the study on 70-plus public institutions to restructure duplication of functions and reduce State spending? We would like to know your thoughts on this story. Send your comments to firstname.lastname@example.org