The Government of Panama will increase the budget for 2015 by 7%

The Government of Panama presented on August 2nd - to the National Assembly the draft budget for 2015 by $19,5 Billion, 7% higher than this year, an official said.

The Panamanian Vice-minister of Economy, Ivan Zarak, said on Channel 2 local TV that the Cabinet approved the project and that it emphasizes investment US $4,4 Billion in the social agenda of the government.

Another $3,5 Billion will be allocated to financial investment.

He noted that $10 Billion will be spent on the functioning of the state, including the service of the public debt.

In this line, there are plans to pay $1,2 Billion for so-called "turnkey projects", corresponding to works made by the previous administration of Ricardo Martinelli (2009-2014) deferred payment.

The Government estimated an economic growth forecast of Panama for 2015 of 6.5% and inflation of 4.3%.

Zarak said Martinelli left to pay all US $ 2,700 million between 2015 and 2019 on projects such as the line of the Panama Metro One.

 

The official specified that the projection for 2015 "respects the debt limit" prescribed by law prosecutor social responsibility not exceed 2% deficit in Non-Financial Public Sector (NFPS) to gross domestic product (GDP).

He explained that for the next year it is expected to generate revenues of NFPS tax revenues and dividends about $11,5 Billion and the other $8 Billion to complete the costs obtained from equity and debt.

He clarified that "there was an abuse" in the management of projects deferred payment in the previous administration and this government will go to it when the situation warrants it, like attending an emergency natural disaster, being subjected to the procurement system, "would take at least three months" to respond.

By 2015, the government allocated a payment of $ 250 million to the Metro System and a "historical" starting $100 million to revive the agricultural sector, he said.

Other public investments will correspond to $110 million to implement urban renewal of the old case of the Caribbean city of Colon, $89 million to continue the cleansing of the Bay of Panama and $100 million for the program for Health Basic.

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