Panama 2015 budget increased by $1.8 billion

PANAMA’S $19,5 billion, budget for 2015 was presented to the National Assembly on Wednesday Aug 10, by the Ministry of Economy and Finance It amounts to $1.8 billion more than the current spending plan.

Finance Minister Dulcidio de la Guardia said that “the budget is focused on complying with the pillars of the government’s plan.

” It doubles the budget of the Ministry of Agricultural Development, increases funding for security and provides for improvements in health, housing, transport and education. The budget was drawn up on the basis of project economic growth of 6.5 percent and an inflation rate of 4.3 percent. It estimates the Gross Domestic Product (GDP) will be $52.5 billion and the fiscal deficit will be $1 billion, equivalent to 2 percent of GDP, the limit set by the Social Fiscal Responsibility Law for next year.
The current income of the public sector will amount to $12.6 billion. Tax revenues will total $8.9 billion, giving a direct correlation between the rise of tax revenues and economic growth. On the other hand, a decrease from non-tax revenues of 7 percent is expected, reports La Prensa. This is the product of a projected 17 percent fall in dividends from state enterprises. On the expenditure side, the operating budget will be $9.4 billion, 48 percent of the total, while capital investments will be $7.8 billion (40 percent) and debt service $2.3 billion, or 12 percent of the total.
Debt service will increase 64.1 percent compared with 2014 due to the expected amortization of the Panama 2015 bond, which expires next year. Sept. 23 and will last until October 23.