Summary.
The bill adds Article 1123-A to Chapter III, Expenditure Budget, of Title II, Revenue and Expenditure Budget, of the Fiscal Code. The provision would apply to public institutions with bonus incentives recognized by law. Their officials would receive the corresponding bonus only when the Central Government’s current tax revenue at the close of the fiscal period exceeds the revenue target established in the General State Budget Law for the current fiscal year. The condition concerns the revenue collected by the close of the period compared with the revenue target set for that year.
The basis for calculating the incentive would take into account the difference between the excess current tax revenue actually collected by the end of the fiscal period and the revenue budgeted for the same period. Every incentive or bonus would require a corresponding appropriation in the General State Budget Law for the fiscal year in which it is paid. The article would prohibit authorizing bonuses without a legal mandate and make their authorization subject to the public revenue surplus requirements set out in the new provision. An incentive recognized by law would thus be tied both to the fiscal result and to budgetary funding.
The Ministry of Economy and Finance (Ministerio de Economía y Finanzas), through the National Budget Directorate (Dirección de Presupuesto de la Nación), would specify each year in the Budget Law the allocation and distribution of the bonus amount for each beneficiary entity, according to fiscal results and revenue targets. An individual bonus could not exceed the equivalent of 1 month of the beneficiary official’s base salary. The amount also could not exceed 30% of the Central Government’s excess current tax revenue. The incentives would be extraordinary benefits: they would not constitute salary, create vested rights, or be included in the calculation of employment benefits.
The paragraph assigns the Ministry of Economy and Finance, through the National Budget Directorate, responsibility for certifying the surplus and its calculation basis by resolution, with the approval of the Office of the Comptroller General of the Republic (Contraloría General de la República). Without those certifications, no entity could accrue, commit, or pay bonuses. The identifying provision specifies the addition of Article 1123-A to the Fiscal Code of the Republic of Panama under Law 8 of January 27, 1956. The proposed effective date would be upon promulgation. The bill concerns these public entities, the beneficiary institutions and their officials, and public sector budget management and tax collection.
What it proposes.
- Fiscal conditions for paying bonuses recognized by law.
- Budget appropriations and limits on incentives.
- Certification of excess revenue collected.
Who it would affect.
- Public institutions with bonus incentives recognized by law.
- Officials entitled to those incentives.
- Entities responsible for budget allocation and certification.
Key points.
- Adds Article 1123-A to the Fiscal Code.Art. 1
- Makes payment of the bonus conditional on the Central Government’s current tax revenue exceeding the revenue target at the close of the fiscal period.Art. 1
- Links the calculation basis to revenue collected above the budgeted amount and requires an appropriation in the General State Budget Law.Art. 1
- Prohibits authorizing bonuses without a legal mandate and sets limits of 1 month of base salary and 30% of the surplus.Art. 1
- Classifies the incentives as extraordinary benefits that do not constitute salary or enter into the calculation of employment benefits.Art. 1
- Requires certification of the surplus and its calculation basis before bonuses are accrued, committed, or paid.Art. 1
- Identifies the addition to the Fiscal Code of the Republic of Panama under Law 8 of January 27, 1956.Art. 2
- Provides for entry into force upon promulgation.Art. 3