Panama’s deficit climbed 5.6 percent in past year

 

That’s $613 million and creates the largest increase in the public debt since 2004, when it increased by about $1.3 billion.

 

Minister of Economy and Finance Alberto Vallarino said the financial outlook of Panama is quite positive" and the

increase is within the limits of the Law of Social Fiscal Responsibility.

 

The ministry estimates that the debt will be about 43 percent of the gross domestic product (GDP).

 

In the early part of the century the debt was 70 percent of GDP.

 

But some economists are calling for the government to rein in spending, claiming that expenditures should be financed by current revenues.

 

The public deficit is expected to grow this year with the government hopingthat the expanding economy will lower the debt/GDP ratio to under 40 percent.

 

The National Economic Council has authorized the government to issue up to $600 million in treasury notes in 2011.

 

********************

 

Original Source: www.newsroompanama.com

Date Retrieved: January 11, 2011.