Spending on public works up 50% this year

September 16^th, 2014 (InsideCostaRica.com) Spending on public works has increased by 50% in the first seven months of 2014 compared to the same period last year, according to recent data.

Two of those months were under the administration of the new Solís government.

Total spending on public works for the period was about $468 million USD.

The trend is expected to continue next year, when the government budget calls for an additional 12% increase in public works spending.

Some of the projects earmarked for next year include improvements in telecommunications, electricity, water supply, and sewer systems.

Two of the largest projects during the first half of this year were the expansion of the Interamerican Highway between Cañas and Liberia and the resurfacing of Route 32 between San Jose and Limón.

Though spending on public works is increasing, such spending still represents just 8.5% of government expenditures.

Victor Umana, deputy director of the Latin American Center for Competitiveness and Sustainable Development at the INCAE Business School, said that figure is insufficient.

“Generally speaking, Costa Rica, in the last three or four decades, has invested little in infrastructure and when one looks at the efficiency rankings in spending, Costa Rica appears very low,” Umana told the daily La Nacion.

According to the 2014-2015 Global Competitiveness Report released on September 2^nd, Costa Rica ranked 103 in total infrastructure, 119 on roads, 115 on port infrastructure, and 120 in the efficiency in government spending out of 144 countries included in the report.