Fiscal deficit down in first quarter Fiscal deficit down in first quarter
First a comment: And that should be news #1. Considering the common practice in Latin America (Brazil, Venezuela, Argentina, Costa Rica, etc.) to have their deficits balooned, Panama is doing relatively well. Of course the best budget is when there is no deficit at all and the government spends only what they make. At the other side Panamanian government counts way too much on future income. There are plenty international businesses flying away from Western countries where they are typically overtaxed and there is still a high demand for more liberal places like Panama. However it’s quite shaky to rely mostly on constamtly increased revenue and new money flooding the country. But again, it’s not that bad as Panama so far managed to avoid slippery path to socialism like Venezuela or Brazil.
INCREASED government revenues helped reduce Panama’s the fiscal deficit at the end of the first quarter of 2016
It dropped more than $100 million to $217 million, from the $338 million deficit recorded in the first quarter of 2015.
The fiscal deficit represented 0.4 percent of the country’s gross domestic product (GDP), down from 1.1 percent the previous year.
Deputy Minister of Economy Ivan Zarak said at a Thursday May 12 press conference that total revenues amounted to $2.8 billion, 15.3 percent more than the previous year.Courtesy of NewsRoomPanama