No layoffs are expected in the central state

The “restriction” system that the Government plans to implement so that the state salary does not increase further does not include layoffs, explained Minister of Economy and Finance Héctor Alexander.

According to the owner, the strategy consists in not filling those jobs that appear in the state that do not need to be filled.

The minister repeated that the weight of the salary decreases over time, and its increase is attributed to the so-called by special laws, which consist of gradual increases established by law for various professions in the public sector.

Alexander assured that these laws take up two-thirds of the central government’s payroll, which for this year is $4.3 billion.

The latest report presented by the Comptroller General of the Republic, updated since last August, reflects an increase of 3,000 officials in the central government compared to the same period in 2022.

For that month, there were 168,176 employees in the central government who earned $265.7 million, which is $3 million more than in 2022.

The Minister of Economy defended the budget that was approved and sanctioned last Friday and stated that only three sectors represent more than 60%, namely education, health and security.’

35

percentage of the central government budget is allocated to the education sector.

258

1,282 civil servants worked in the public sector until August last year.

Far from thinking that the next Government will have a heavy burden to deal with, due to external and internal loans requested in this five-year period, Héctor Alexander hopes that there will be a successful transition between the two administrations.

“We hope both governments can handle it,” was the owner’s response to this particular year in which the two administrations have to execute the general budget, which is $30.69 billion.

From the private sector, Adolfo Fábrega, president of the Chamber of Commerce and Industry, considers the increase in the budget for education to be positive, but it will be important how it will be realized.

“The question now is how it will be carried out and the development in a tangible sense, how this money will be invested,” said the business leader in an interview with Telemetro Reporta.

For its part, the position of the National Council of Private Entrepreneurship – CONEP – leans towards a strict budget, away from extravagance and encouraging clientelism.

Legacy

After much criticism of the management of economic policies, Héctor Alexander confirms that the best legacy that the government of Laurentino Cortiz can leave is the removal of the country from all the exclusive lists we are on internationally.

In October, Panama left the Financial Action Task Force (FATF) gray list.

All that remains is for the country to be removed from two similar lists of the European Union.

Alexander points first to a list that has to do with money laundering, which, he explained, is closely related to Gafi’s.

“I estimate that we will leave that list at the beginning of this year,” estimates the Minister of Economy.

The second list refers to tax evasion, which, according to the minister, could be good news, but after money laundering.

In October, the European Union’s economy ministers decided to keep Panama on the list of non-cooperative countries in fiscal matters.

This list is updated every six months, so we would know about it in April.