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US borrow’s about 40% to cover its obligations, apperantly CR likes to follow suite [see excerpt from La Nacion below] by borrowing 45%, all the while ignoring their own laws in that they can not use borrow funds to pay salaries [diputados, etc] ie see below]
[b]Published in El Financiero[/b]
Finance Minister, Fernando Herrero appeared before legislators of the Financial Affairs Committee, and presented a 2012 budget of ¢ 5.9 trillion ($11.6 billion) for the Costa Rican central government. Nearly half of the budget, 45 percent would be financed with internal debt. Herrero warned that the current level of government debt is unsustainable, and that legislators should consider again a proposal to increase taxes. The full text of the article outlines the funding priorities of the government, which includes public security and social development.[b]Published in La Nacion[/b]
Next year the Government will cover 47 percent of its expenditure on wages with loaned money, which according to the Comptroller General of the Republic is illegal. Article 6 of the Law on Public Financial Management and Budget states: “For the purposes of proper financial management, running costs can not be financed with capital inflows (loans).”Yet another great example of how you and I are supposed to balance our checkbooks or we get into serious financial problems with the government’s tax man but, for some inexplicable reason, Wall Street’s banksters and governments around the world (who are often in the same bed), do not seem to understand basic mathematics and compound interest…
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