Panama National Assembly advances 2027 General State Budget

The Budget Commission of the Panama National Assembly has approved the 2027 General State Budget project in its first debate. The proposal passed with a vote of 8 in favor and 4 against, moving the document to a second debate in the plenary session.

The legislative body has scheduled extended sessions through Saturday, October 31, to facilitate the approval process. The budget includes approximately $186.83 million in adjustments following recommendations from deputies. These modifications, approved by the Cabinet Council, aim to prioritize sectors such as health, education, security, public infrastructure, and basic services, while also accounting for climate risks and earthquake recovery needs.

The debate was marked by significant tension between legislators and Minister of Economy and Finance Felipe Chapman. During a seven-hour session, Deputy Luis Duke questioned the allocation of funds for Presidential works compared to hospital funding, leading to a heated exchange where Chapman demanded respect after being accused of providing inaccurate data. Despite the friction, Chapman maintained that the 2027 budget is “responsible, realistic and executable,” noting that it reduces debt service compared to 2026 while prioritizing social investment.