Lawmaker predicts financial crisis in 2016

An opposition lawmaker raised the possibility of a fiscal crisis during discussion in the legislature Tuesday.

The lawmaker,  Rolando González Ulloa, said the crisis would be because President Luis Guillermo Solís lacked a strategic route and economic contingency plans. The lawmaker is a member of the Partido Liberación Nacional.

González Ulloa said that representatives of the World Bank and the International Monetary Fund predicted a financial crisis within six months if new taxes are not levied by that time.

The bank representatives met with lawmakers Monday to push for approval of a handful of new taxes.

González Ulloa blamed a lack of dialogue between lawmakers and the executive branch for the problem. He criticized the executive branch for its incompetence, its financial imprudence and its political hubris.

The executive branch is seeking a value-added tax, increased income tax, anti-fraud legislation as well as changes in what income is exonerated from taxes. There also are bills to reduce the amount spent in pensions. And then there is the bill to renew the tax on corporations.

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