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Caribbean & Central America - December 2011 (ISSN 1741-4458)

ECONOMIC OVERVIEW: COSTA RICA

The opposition-controlled unicameral national assembly delivered another blow to President Laura Chinchilla in late November when it approved its own version of the 2012 budget, which included a CR$25bn (US$50m) cut to the government’s CR$5,872bn (US$11.8bn) original proposal. The opposition’s budget was approved on 27 November by 23 votes to 20 in the 57-seat legislature, which has hitherto failed to reach an agreement over the government’s proposed fiscal reform. Furthermore, negotiations over the budget have laid bare political frictions, both within the opposition alliance and between the executive and members of the ruling Partido Liberación Nacional (PLN).

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