Project Law 312, which amends Law 37 of 2009 on the decentralization of public administration, has moved to a second debate after discussing the latest proposals in the Municipal Affairs Committee. The discussion was attended by municipal and local authorities demanding the full transfer of funds from the Real Estate Property Tax (IBI) by the Ministry of Economy and Finance. This project includes 58 articles of current legislation and the addition of four new articles. It is promoted by the President of the National Assembly, Jorge Herrera, an open advocate for decentralization, and is also supported by deputy Javier Sucre with proposals 313 and 365. Currently, there is total disagreement over the distribution of the IBI, where the Ministry of Economy only provides a portion. This was stated by the president of the Association of Municipalities of Panama, Nadine González, who pointed out that for seven years, not all resources have been transferred. Local authorities insist that the project must ensure full compliance and not continue the situation that has existed since 2016.
Decentralization Project Moves to Second Debate in Panama
Panama's decentralization bill moves to a second debate. Local authorities demand full transfer of the real estate tax from the Ministry of Economy, citing that since 2016, not all funds have been released.