Public finances in Panama have experienced a significant setback, bringing them to levels similar to those of the most critical period of the pandemic. This is partly due to the decrease in both the Central Government's capacity to collect Tax Revenues and to generate Non-Tax Revenues.
According to recent data, the country's financial situation has been negatively impacted by the decline in tax collection, which has weakened the Government's ability to cover its expenses and meet its commitments. Additionally, the difficulty in generating non-tax revenues has jeopardized Panama's economic stability.
This situation has raised concerns among economic analysts, who warn about the need to implement urgent measures to reverse this trend and avoid a long-term financial crisis. In this context, it becomes increasingly crucial to strengthen both tax collection and the generation of non-tax revenues to ensure the sustainability of public finances.
In the words of an economics expert: "It is key that concrete actions are taken to improve the Government's capacity to collect revenues and diversify its funding sources. Otherwise, the country could face serious economic problems in the near future."
