Bill 143.

Summary.

The bill proposes revenue and expenditure appropriations for fiscal year 2025. In the institutional budgets beginning with Art. 153, it sets out revenue, operating expenditure and investment for educational institutions, including the University of Panama (UNIVERSIDAD DE PANAMÁ), specialized universities and agricultural training centers. It then presents the consolidated budgets of public enterprises and their individual appropriations. These include the Maritime Authority of Panama (AUTORIDAD MARÍTIMA DE PANAMÁ), the Civil Aviation Authority (AUTORIDAD AERONÁUTICA CIVIL), the Agricultural Marketing Institute (INSTITUTO DE MERCADEO AGROPECUARIO), the National Charity Lottery (LOTERÍA NACIONAL DE BENEFICENCIA), and entities connected with water, electricity, markets, transport and economic zones.

The bill next organizes the revenue, current expenditure and capital expenditure of financial intermediaries. It presents budgets for financial supervisors, the Agricultural Development Bank (BANCO DE DESARROLLO AGROPECUARIO), the National Mortgage Bank (BANCO HIPOTECARIO NACIONAL) and the Agricultural Insurance Institute (INSTITUTO DE SEGURO AGROPECUARIO). For the public financial sector, it includes the budgets of the National Bank of Panama (BANCO NACIONAL DE PANAMÁ) and the Savings Bank (CAJA DE AHORROS). It then states appropriations for other public sector entities engaged in airports, highways and electricity transmission. The schedules distinguish sources of revenue from expenditure programs for the proposed fiscal year.

The budget administration provisions define their purpose, scope, terms and principles. They govern budget execution through monthly allotments and require Central Government revenue to be entered in the budget and deposited for the benefit of the National Treasury (Tesoro Nacional). They distinguish the stages of expenditure and set rules for incorporating institutional revenue, additional revenue, borrowing proceeds and collection surpluses. They also address contributions and dividends payable to the State, adjustments when collections fall below budget estimates, and changes to revenue items. The National Bank of Panama is designated as the official depositary of public funds, while the Office of the Comptroller General (Contraloría General de la República) is assigned the related oversight.

For expenditure, the bill establishes appropriation levels, controls and adjustments to monthly allotments. It covers salary scales, leave payments, assumption of office, personnel actions, temporary appointments, special services, supplementary payrolls, consulting services, representation expenses, overtime, travel allowances and official travel. It governs transfers to decentralized entities and to individuals or organizations, centralizes social security payments through the General Treasury Directorate (Dirección General de Tesorería), and addresses compliance with court ordered compensation and employee benefits. It also sets conditions for telephone expenses, multiyear purchases, office leases, electronic transfers, revenue collection incentives and the release of committed balances.

For public investment, the bill sets authorizations and conditions for project execution, contracting, direct administration, advances, letters of credit and multiyear projects. It regulates cost increases, the recording of disbursements financed by loans or donations, external loan contracts and cash programming. It provides for studies for certain projects and financing through the Preinvestment Fund. It then defines transfers between appropriations and additional credits, including their eligibility conditions, deadlines and procedures, as well as budget changes between institutions and changes to staffing structures.

The final part provides for budget hearings before the Budget Committee (Comisión de Presupuesto) of the National Assembly (Asamblea Nacional), monitoring of targets and submission of reports. It governs budget closing and liquidation, cash reserves and balances, expenditure ceilings and the preparation of future draft budgets. It includes provisions on program and organizational structures, job manuals, prior review, internal controls and the application of rules through instructions. It also addresses public service enterprises, procurement for social benefit projects, identification of public works and sectoral classification. It provides for training and certification of budget personnel, fiscal data exchange and protection of that information. The bill proposes commencement on January 1, 2025. Its subject matter concerns the Ministry of Economy and Finance (Ministerio de Economía y Finanzas), the Office of the Comptroller General and the budgeted entities, and could be of interest to the education, health, transport, agricultural, banking, insurance, infrastructure and public service sectors.