Government coffers fall short as pandemic continues

Panama State coffers were  $536 million short in Current Income in relation to budget estimates during the first four months of 2020, , according to preliminary statistical data from the General Directorate of Income (DGI).

The Ministry of Finance (MEF)  clarified that they had estimated that in the first quarter, the collection of Current Income would be $2,250 billion, but only reached $1,714 billion, which represents a level of 76% compliance.

From January to April, Tax Revenue was $466 million less than the estimate for the period. The DGI had budgeted to receive Tax Revenue of $1,792 billion, but only recorded an income of $ 1,325 million, for a deficit of 26%, the press release detailed. In the note, the DGI indicated that “after the positive results, in the months of January and February, tax collections were affected since last March, when the COVID-19 cases began in the country; mainly, after the DGI adopted a series of fiscal measures to facilitate and alleviate tax compliance of taxpayers, as a result of the impact of the coronavirus on the economy in different activities and the suspension of labor contracts. “

They warn that “in the months to come, less economic activity is visualized, which will cause a decrease in collections higher than those already registered so far