In President Juan Carlos Varela's five year public investment plan (20114-19), only $876m will be destined to be completion of public work projects launched by the previous administration. Amongst the projects that are due for completion, the Inter-americana motorway between Santiago and David will receive $271m in public funds; whereas the south terminal at Panama City Tocumen International Airport, will benefit from $171m.
Against this backdrop, the government is allocating $4bn to politically sensitive social projects: a full 55% of the investment budget will go to social needs, with economic projects seeing 6%, infrastructure 32%, environment 1%, and justice and administration 5%. All the while, the public deficit is on the increase: in the first half of 2015, the government’s budget deficit reached $723m, given revenues of $4,879m, against spending that reached $5,602.
In the key industry of tourism, the government has invested $3.5m in the refurbishment project of the convention centre at Atlapa; $3.4m for an international promotion campaign; and a mere $228,000 to bolster Panama’s credential as an international convention centre.
The third electrical transmission line, worth $5bn in public and private money, has seen a 49% completion, and is due in 2019.
The construction of the motorway between Agua Fría-Yaviza in Darien province will see a $148m investment. For their part, rice producers will benefit from $22m in credits and $38m in subsidies, although what the industry really needs is more private investment aimed at improving productivity and competitiveness.
Contenido patrocinado
Últimas noticias