Downward adjustment of the project General state budget for the fiscal period 2024 showed the weight that the cost of wages the current revenue of the central government.
According to his own explanations Minister of Economy and Finance, Héctor Alexander, In ‘peak periods’ spending on wages was over 50 cents on every dollar. By 2024, it is estimated that for every dollar the government receives, it will pay 34 cents in wages.
For Alexander, the above reflects how payroll is losing importance in current income. “As part of the strategy, we want as time goes by, for every dollar the government gets, it spends less on wages,” Indian.
By August 2023, the central government had a total of 168,176 officials, of which 149,883 were permanent and 18,293 were permanent, which was an increase of 3,044 officials compared to August of the previous year.
Total federal gross payroll in August 2023 recorded a total of $265.7 million between permanent and temporary officials. Central government salaries for August 2023 compared to August 2022 have been increased by 3.0 million dollars.
Alexander also emphasized the influence which special laws in the budget.
The impact of the special laws between 2020 and 2024 is 26% on central government payroll. More than two-thirds of the central government payroll falls under special laws, Alexander explained.
The salary increase due to special laws was an expense on the state payroll. 4.56 billion dollars during the five-year period from 2020 to 2024, he pointed out.
The Minister of Economy and Finance claims that between 60% and 70% of the central government’s payroll is in special laws, which is the equivalent of a mandatory budget.
“Special laws have eaten up a large part of the income so far and affect everyone’s opportunities,” – pointed out Alexander.
Subsidies
The Head of Economy and Finance also referred to the consumption of subsidy which the country is facing.
“A few years ago we were spending more than $30 on subsidies for every $100. For the year 2024, we are talking about spending $15 on subsidies for every $100 we receive,” Aleksandar elaborated during the support of the harmonized General State Budget before the Budget Committee of the National Assembly.
Losses in the importance of these costs create much more room for every $100 received to be used in other activities, saving almost 10% of current revenue from the central government, Alexander stated.
According to Alexander, this will enable a greater part of the central government’s investments to be financed by the state’s own funds.
Source: Panama America
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
