The Minister of Economy and Finance, Felipe Chapman, announced that he will present recommendations for the General State Budget for the fiscal year 2025 before the Cabinet Council. These recommendations include the increase in expenditures required by law, such as 7% of the Gross Domestic Product (GDP) allocated to the education sector and the allocation of resources to local governments.
Chapman emphasized the importance of reducing tax evasion to finance the budget, highlighting the aim of achieving a balance between economic growth, human development, and fiscal responsibility. He stressed that the goal is to ensure sustainable growth for the country, creating jobs and promoting social welfare, while always respecting the limits of revenues.
After considering the recommendations from the National Assembly's Budget Committee, Chapman indicated that modifications will be made following a conservative, prudent, and responsible approach. The minister emphasized fiscal stability and economic growth by allocating budgets based on the actual revenues of the State, not just on the GDP.
The budget for 2025 includes the payment of the 25-pound gas tank subsidy and reaffirmed the National Government's commitment to Panamanian households. Chapman also highlighted the importance of reducing tax evasion through inspections and audits by the General Directorate of Revenues and maintaining credibility with international credit organizations to reduce interest rates on loans.
Minister Chapman announced an investigation to determine "errors within the budget" with unapproved figures. He concluded by stating that once approved by the Cabinet, the budget for 2025 is adopted immediately and is part of the budgetary hearings of the Budget Committee, thus avoiding the need to initiate a new process from scratch.
