Spending leading to a large spike in debt, Warnings issued
- By : Panama Now
- Category : Economy, Financials
Economists consulted by La Estrella de Panama pointed out that the increase in Central Government expenditures versus total revenues could increase the country’s fiscal debt.
Much of that debt, they added, could be purchased to meet the commitments and campaign works of the current government administration, which is about to end.
The opinions came to light after, this Wednesday, the Ministry of Economy and Finance revealed that during the first quarter of 2018, Central Government expenses increased 36.7% and total revenues rose 1.7%.
For the economist Rolando Gordón, the increase in Central Government spending has a very logical explanation: there is a year and two months until the government finishes its term and it is hastening its works and has to pay for them. “In the first quarter, expenses are higher than last year’s revenues because now the government is starting to pay for a lot of works that are ending,” Gordón explained.
For the teacher too, it is a situation that occurs in all governments; However, he considers that in the last year of this administration many works will be rushed and perhaps the government will have a much greater debt than last year or the previous one, because it will have to cover those commitments.