According to a report issued yesterday by the Ministerio de Economía y Finanzas (MEF), the country’s $683 million surplus from the 2007 budget will be used to cover outstanding “financial commitments” and to pad reserve funds.

Frank De Lima, a financial adviser to the government of Mireya Moscoso, lamented the fact that the funds will have a limited impact on improving the government’s financial position.

“In simple terms, [the government] stopped paying suppliers in order to show an improvement in public finances. The report proves that the surplus is not available. If it was, they could use it to pay off debt or to make an investment in a project such as the new public transport system, but they can’t,” he said.

The document confirms that the government had no plans to use surplus recorded last year to reduce the country’s deficit, which currently stands at $10.4 billion.

Another fact highlighted in the report says that the Executive and the Asamblea Nacional authorized $600 million in excess spending, pushing the government’s budget from $7.4 billion to $8 billion.

Source: http://www.prensa.com/hoy/herald/1311879.html