The CCIAP recommended a schematic review of government operating spending, to increase current savings to a minimum of 30%.
The Chamber of Commerce, Industries and Agriculture of Panama ( CCIAP
) assured that the responsible management of public finances is key to reactivate the economy, and recommended a schematic review of government operating spending, to increase current savings to a minimum of 30% to finance a higher percentage of public investment plans.
“It is worrying that, in the last two years, public investment has been financed 100% with debt. Undoubtedly, this is partly a consequence of the impacts of the pandemic, but it is unacceptable that the crisis is an excuse to avoid or exclude from the equation all kinds of saving measures for current spending," said CCIAP
in its Sunday statement.
The union indicated that the State Budget for 2022 for $25.1 billion foresees a fiscal deficit of 4% of GDP, and urged the revision of those expenses that lead to that result.
“The strategic budget distribution, conducive to better use of resources, must go hand in hand with transparency and accountability; and it must include plans that inject liquidity into the domestic market, promote consumption and create jobs, hand in hand with private companies," the statement said.
pointed out that revenues should also be managed to achieve higher levels of collection, both through measures to reduce tax evasion and through strategies to boost consumption and investment.