The Ministry of Economy and Finance (MEF) of Panama, by direct instruction from President José Raúl Mulino, will proceed to review and establish more rigorous processes for the allocation of funds to municipalities. The objective is to ensure transparency and the proper use of public funds by local governments. The MEF emphasizes that the 64 municipalities in the country that require subsidies must request funds from the central government, complying with established legal formalities. Any fund transfer can only be initiated at the request of a municipality. As part of these measures, the General Comptroller's Office will audit the allocation of funds to municipalities since last year to verify the fair use of requested and assigned resources. The MEF also reported a 96% reduction in the transfer of discretionary funds, dropping from an average of 143 million balboas per year under previous governments to 6.9 million in 2024. To further strengthen controls, the MEF will enhance internal procedures, the traceability of budget allocations, and improve their dissemination to the media and the public. Additionally, Minister Felipe Chapman revealed that the MEF has sent a 16-page letter to the National Assembly with recommendations for a bill to amend the Decentralization Law.
