State payroll at “unsustainable” $4 billion

Panama’s Chamber of Commerce, Industries and Agriculture (Cciap) has called on the Ministry of Economy and Finance and the General Directorate of Revenue to be accountable for the impact  of unsustainable” expenditure.

In its weekly bulletin, the chamber said that the state payroll has reached historic levels: close to $4, billion in 2021.

“If we add to this the increase in subsidies –$1.6 billion in 2019 vs. $2.4 billion to date– coupled with the high amounts of other types of expenses, we are facing extraordinary figures for State money that warrant an immediate review with a view to making adjustments and guaranteeing the sustainability of public finances,” the organization said.

The Cciap pointed out that, after two years of sacrifices as a result of the crisis caused by the covid-19 pandemic, actions that reflect containment, austerity, and control of expenses are unknown.

Therefore, for the organization, it is time to define a plan to offset some subsidies and start investing this money in actions and plans that add value to society and the individual.

“Given the complicated economic situation we are experiencing, where there are external factors that affect the lives of all citizens, the private company has made its share of sacrifice, acting in accordance with the times. This is what we also require from both the Executive and Legislative Branches,” it emphasized.

The government has justified that part of the growth in payroll spending has to do with laws that order periodic increases in the salaries of some officials.