Panama: Government Spending 10% More on Wages

Government spending on salaries has shown a significant increase compared to the previous year, according to a report by the Controler from July, which reveals that the of the total expenses, 40% relates to the Ministry of Education.

Others recipients of the expenditure are: Public Security, with 21,268 officers and $96.5 million and the Ministry of Health, with 13,789 employees and $92 million.

At times when uncertainty reigns in the international economy, organizations like the International Monetary Fund have recommended reducing public spending in order to keep the fiscal deficit within ranges manageable by the government.

An article in Prensa.com states: "The Government usually justifies these increases in expenses citing commitments to workers made in special laws and the population increases. But in the past, the economy minister, Alberto Vallarino, acknowledged that the percentage of operating costs- one of which is the payroll -remains high. "

Source: Prensa.com

More on this topic

Fiscal Deficit Up 70% in Costa Rica

September 2010

In the first eight months of 2010 the deficit totaled $997 million, 70% more than the same period of 2009, as a result of stagnant revenue and increased spending.

State revenues are still below 2008 levels, and spending has increased considerably, mainly in salaries, social programs and pensions.

The Excessive Cost of the State

March 2012

The Costa Rican government’s spending is excessive, especially its payroll, this is limiting the country’s competitiveness, and preventing the development of productive enterprises.

From a press release of the Costa Rican Chamber of Commerce:

Excessive public spending limits business development

Guatemala: Less on Infrastructure, More on Education

September 2010

The Guatemalan government's 2011 budget will reduce the share allocated to Communications, Infrastructure and Housing by $180 million (-29%).

Edgar Balsells, Minister for Public Finances, commented that a budget increase for priority reconstruction projects has not been ruled out.

Costa Rica's 2011 Budget

December 2010

More government spending -> more debt -> more expensive credit and more taxes. The State continues to fatten at the expense of the productive sector.

Juan Carlos Hidalgo, in his blog at Elfinanciero.com, begins his article calling the 2011 budget approved by the Legislative Assembly as “illegal”. He explains that current expenditures are included as investments, which is specifically prohibited by the National Budget Law.