The ratings on the Republic of Costa Rica reflect improved fiscal management over the last year and the likely passage of fiscal reform that is expected to yield up to 2% of GDP in 2006 in further revenue, bringing the overall general government deficit to around 2.5%. The general government deficit was 3.5% in 2004, down from 4.3% in 2003 and over 5% in 2002—despite an end to temporary tax measures implemented in 2003—as the government cut expenditure and improved tax collection. As noted, there is a high probability that fiscal reform, which has been under debate for well over two years, will pass by August 2005 under a new fast-track approach that shortens debate in Congress and allows for
