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Panama: Varela’s Government Begins Term with Less Revenue than Expected

By: PanAm Post Staff - May 29, 2014, 2:43 pm

EspañolThe new President of Panama, Juan Carlos Varela, will inherit a government with a smaller budget than expected. According to figures published on Wednesday by the newspaper La Prensa, government revenue in the first quarter of the year was 12.2 percent less than budgeted.

The results were associated with bad performance generating tax revenues, which turned out to be US$207.1 million lower than expected.

The biggest gap was in direct taxes, which were 21.9 percent less than calculated. With regard to taxes on legal entities, including the Colón Free Zone, results in the first quarter showed a budget deficit of US$101.8 million and a decline of US$31.4 million (15 percent) compared to the same period during the previous year, according Panama’s National Authority of Public Revenue (ANIP).

Juan Carlos Varela, who will assume the presidency on July 1, will command a country with a growing economy, but will enjoy less revenue than his predecessor, Ricardo Martinelli, potentially limiting his ability to spend and carry out various political projects.

Source: La Prensa.