Budget request reductions are not cuts says Minister

Panama’s Minister of Economy and Finance, Alberto Vallarino, has reacted to criticism of reductions in requested budgets for fiscal year 2011.

Vallarino  says there  could be rearrangements  in light of isolated cases that have been discussed and supported during budget hearings underway in the National Assembly.
He said  said that the word "cut" is being used "liberally", since nothing has in fact been cut. By contrast, he said, institutions are receiving more money this year than last year. "How can you say the budget has been cut when it has actually been increased by 30 percent," he said.
Critics say the reductions are because of unplanned initiatives launched by President Ricardo Martinelli.
There has been strong criticism from teachers, parents and even the Minister of Education over the $247 million cut, or in doublespeak “the reduction” of the requested budget for the cash starved school system.
Education Minister Lucy Molinar, formerly an outspoken TV journalist said that the cuts would impact purchasing of supplies and staff hiring.and that cuts will affect national education.
The Ministry [of Economy and Finance] is tasked with making adjustments to meet the Fiscal Social Responsibility Law, allowing for a deficit of only 1.5 percent for next year," said Vallarino.
He said that that "the Government can only spend what the law allows, and in the budget hearings held at the MEF, institutions and ministries were requesting rather exorbitant amounts, as if they were the only ones asking."

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