The Municipality of Panama presented its 2026 Budget, a sum of B/.242,349,323, with a message of less waste and more direct investment in the people. It is a historic figure because it marks a halt to unnecessary spending and a shift towards austerity and transparency. This spending plan is 25% smaller than the one left by the previous administration, and according to the Municipality, this demonstrates that luxuries and 'showcase expenses' are over.
Real cuts that are felt on the streets The current administration reaffirmed its line of fiscal discipline by showing substantial, not cosmetic, cuts: • Zero car rentals (a 100% reduction). • Zero travel and per diems (a 100% reduction). • Zero mobile phone payments for officials. • A smaller administrative payroll, adjusted to 'what is really needed'. All this money saved, as they explained, is being directed towards real community works, not office expenses.
Comparatives 2024–2026: the money is used differently Financial reports showed that: The 2024 budget was B/.325,580,000. For 2026, it falls to B/.242,349,323, a reduction of –24.26%. Compared to 2021, the drop is B/.34,601,177 (–12.5%). In execution, the change was also seen: the previous administration only executed 50.9% of the 2024 budget. In 2025, with the new guidelines, execution rose to 53.4%.
Where does the money go in 2026? Of the total approved: B/.169,941,519 for the municipal headquarters. B/.72,407,804 for Decentralization, the part that covers works in neighborhoods, community boards, and citizen participation.
Accountability: four pillars • Responsible payment of the debt left behind, avoiding surcharges. • Revenues greater than expenses, to avoid a deficit. • Faster procedures so that works reach the districts without so many detours. • 39 ongoing projects and new works for 2026.
Prioritized works: what's coming The 2026 budget brings resources for: • Inclusive children's playgrounds. • Repair of streets, sidewalks, and community access routes. • Smart bus stops. • Phase 2 of the renovation of municipal swimming pools. • More cameras and technology for the Municipal Surveillance Service.
An extra push In addition to the base budget, there will be an additional B/.5 million for community works, urban maintenance, and social programs. The Municipality ensures that with this budget, disorder and senseless expenses are left behind. Less luxury, more neighborhood. That is the message they want to clearly reach people's pockets and daily lives.
