Panama's Government Will Make Some Budget Cuts To Meet 2012 Legal Spending Caps
Wednesday, June 27 2012 @ 10:21 AM EDT
Contributed by: Don Winner
Editor's Comment: Frank De Lima and the administration of Panama are being responsible at a fundamental level. De Lima came right out and said during this interview "it was a mistake" to have included $400 million dollars in expected income from the sale of state owned shares in the electrical and telecommunications companies in this years budget. Now that those shares will not be sold, halfway through the year they need to go back and "find" a way to make up that $400 million dollar shortfall. But look at it this way - the annual budget for the government of Panama was about $15 billion dollars in 2012. So, a shortfall of $400 million represents about 2.6% of the overall budget. Large enough to be a problem that has to be addressed, but at the same time it's not a total game changer. So in response the government will be cutting some spending on one hand, and finding some additional revenue (taxes) on the other hand. In the meantime, all of the rest of the major work being done by the government continues to purr along smoothly. Anyone who falls into the wild-eyed screaming and ranting and raving of the political opposition is making a mistake. Martinelli got kicked in the nuts - sure. But now they are pulling back and acting like responsible adults, which is encouraging.