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The 2019 budget approved by the National Assembly includes almost $9 billion for investments and $2.943 million for debt service.
Panamanian authorities informed that the approved project includes an adjustment of 350 million balboas additional to the budget initially budgeted by the Ministry of Economy and Finance (MEF).
According to a MEF statement, from this total, $8,996 million are for investments, another $11,930 million will be used for the functioning of the State, and $2,943 million for debt service.
The proposal put forward by the Varela administration to the Assembly includes $5.225 billion for investment projects and $2.581 billion for servicing debt.
The Ministry of Economy and Finance reported that "... the proposal includes important public investment works, such as the Panama Metro ($582.8 million), the Fourth Bridge over the Canal ($288.7 million), Roofs of Hope ($163.6 million), Urban Renovation of Colón ($98.4 million), Sanitation of the Bay ($108.2 million), potable water and sewerage projects ($179.1 million), construction of hospitals and polyclinics in Colón, Darién, Veraguas, Chiriquí and Los Santos ($319.5 million), among other things."
In relation to GDP, the expenses of the Costa Rican state are the highest in Central America.
This was revealed by a survey conducted by the Central American Institute for Fiscal Studies (Icefi). Second place is occupied by the Government of Panama with 23% of GDP followed by Guatemala which has one of the lowest with 15.1% of production.
Costa Rica is the only Central American country which plans to increase current spending to a total of 18.6% of GDP, also the highest in the region. "... The tax burden is not enough to fund the standard of living in terms of public service delivery," said Renato Vargas Icefi analyst.
The Central American Institute for Fiscal Studies has highlighted the unsustainability of the fiscal deficit in Costa Rica, El Salvador, Guatemala and Honduras.
Pensalibre.com reports that "... according to the results of a report by the Central Institute for Fiscal Studies (Icefi) submitted yesterday ... Guatemala, El Salvador, Honduras and Costa Rica find themselves with in unsustainable scenarios regarding public debt in the next few years. "
As unemployment rises and poverty increases, the Costa Rican Minister of Finance has declared "urgent" the payment of bonuses to central government officials.
EDITORIAL OPINION
If you are an official in the central government of Costa Rica, your bonus this December will average 15.6% higher than 2010. But if you are poor, and most likely also unemployed, the only thing that will increase is the number of your neighbors in the same situation.
Between January and July 2011, the state’s payroll totaled $1,098 million.
Government spending on salaries has shown a significant increase compared to the previous year, according to a report by the Controler from July, which reveals that the of the total expenses, 40% relates to the Ministry of Education.
Others recipients of the expenditure are: Public Security, with 21,268 officers and $96.5 million and the Ministry of Health, with 13,789 employees and $92 million.
In the wake of Panama’s upgrade to investment grade, experts are already calling to maintain the efforts that led to such achievement.
Fitch’s recent upgrade of Panama’s debt to BBB- is likely to be mirrored by other big rating companies, confirming Panama’s entrance into the club of investment-grade countries.
The country is now fertile land for investments, lead by the widening of the Panama Canal, and now the investment grade will help lower the cost of credit for many projects, specially infrastructure.
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