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Published Wednesday, October 7, 2020
The government presents a plan to cut
$6-plus million in the next budget
By A.M. Costa Rica staff
A new budget plan with a proposal to reduce approximately $6,646,912 was sent to Congress for its review, the government said.
According to the government, the plan proposes to cancel 1,968 jobs vacancies in public institutions. These job vacancies ' salaries were included in previous budgets even though the person had not been hired yet.
This is the second budget reduction proposal plan to reduce the expense, the government said in its statement. The previous plans had announced a reduction of approximately $672,065,948.
Also, last month the 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 responsible for managing the transfers of scholarships to students.
In 2019, the Ministry of National Planning, known as 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. If duplication of functions are confirmed, the institution could be subject to a restructuring process or even closure.
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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 news@amcostarica.com
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