The University of Panama informed its university community about the budgetary situation for the 2026 fiscal year, highlighting the adjustments made during the budget approval process and the actions taken to ensure the fulfillment of previously acquired commitments. In a statement addressed to the administrative staff, the institution explained that, in compliance with its principles of transparency, fiscal responsibility, and respect for current labor agreements, it presented to the competent authorities a preliminary budget draft for B/. 412.6 million. This included as priorities the fulfillment of the third stage of the salary scale and the implementation of the Position Manual, in accordance with the Collective Convention 2024-2028 and the approvals of the University Government Bodies. However, during the budget approval process, the operating expense item, where the institution's payroll is concentrated, was subject to a reduction of B/. 47.8 million, representing a 14% decrease compared to what was approved for 2025. According to the statement, this reduction directly impacts the institution's financial capacity to meet its obligations, including those derived from union commitments. The university administration indicated that this situation constitutes an exceptional scenario, as it is one of the most significant budgetary cuts in recent years. In this sense, it stated that it will be necessary to establish restrictions to assume new expenditures, seeking not to compromise the operational sustainability of the university. In the face of this panorama, the university highlighted that it has undertaken concrete actions aimed at enabling the fulfillment of the agreements signed. Among them, it mentioned the management of a supplementary credit before the Ministry of Economy and Finance, approved by the Administrative Council through Resolution No. 2-26 SGP. The institution also reiterated that the fulfillment of labor commitments is not only a legal obligation but also an ethical one. Therefore, it assured that it will maintain permanent management before the competent authorities, promoting financial alternatives that allow for a progressive, responsible, and sustainable execution of said agreements. The administration also recognized the impact this situation generates on human resources, highlighting the legitimate expectations of the administrative staff. In line with this, it reaffirmed that the fulfillment of labor agreements is an institutional priority and reiterated its disposition to constructive dialogue, aimed at seeking solutions in the face of current budgetary restrictions. Finally, the University of Panama reaffirmed its commitment to its community, indicating that it will continue to make the necessary efforts to advance responsibly in the fulfillment of the agreements, seeking to safeguard the well-being of its staff and institutional stability. The statement was signed by the rector, Eduardo Flores Castro, and dated in the Octavio Méndez Pereira University City, on April 7, 2026.
