Panama government proposes 18.7% budget increase for 2024

The Panamanian government has outlined a budget proposal for 2024 amounting to US$32.754 billion, reflecting an 18.7% rise compared to the estimated US$27.579 billion for 2023.

Hector Alexander, the head of the Ministry of Economy and Finance, is set to present this state general budget project to the National Assembly for approval.

A press release from the Panamanian Presidency underscores that the 2024 budget allocates 7% of the Gross Domestic Product (GDP) to the education sector, adhering to local law requirements.

Consequently, education is assigned US$5.735 billion, equating to 78% of the Central Government’s tax revenue.

Of this, the Ministry of Education receives US$3.539 billion (62% of the sector’s budget), universities US$829 million (14%), and the Ministry of Culture US$100 million (17%), among other entities.

Additionally, the Presidency mentions that US$14.421 billion (44% of the 2024 budget) is allocated for social services development and US$5.846 billion (18%) for public debt service.

As of the first quarter of 2023, Panama’s public debt stood at US$45.898 billion.

The 2024 national budget project grants the Justice sector the full requested amount of US$700 million, to ensure the effectiveness of its programs and activities.

This budgetary allocation is noted to have garnered international acclaim from the United States, European Union, International Monetary Fund, World Bank, and risk rating agencies.

With this budget, programs linked to combating money laundering, tax evasion, and arms and narcotics trafficking are supported.

It is important to note that Panama is on the Financial Action Task Force (FATF) and EU lists due to deficiencies in fighting against money laundering and terrorist financing.

However, official information on the budget project does not disclose projections for GDP growth, inflation rate, or fiscal deficit for 2024.

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