Panama - Public finance

Panama does not issue its own currency, therefore government spending and investment are limited by taxes, customs, and foreign loans.

The US Central Intelligence Agency (CIA) estimates that in 2000 Panama's central government took in revenues of approximately $1.9 billion and had expenditures of $2 billion including capital expenditures of $471 million. Overall, the government registered a deficit of approximately $100 million. External debt totaled $7.6 billion.

The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.


R EVENUE AND G RANTS 100.0% 1,900
Tax revenue 62.2% 1,182
Non-tax revenue 37.1% 705
Capital revenue <0.1% 1
Grants 0.7% 12
E XPENDITURES 100.0% 2,000
General public services 7.5% 150
Public order and safety 7.1% 142
Education 16.6% 332
Health 17.2% 344
Social security 20.9% 418
Housing and community amenities 2.9% 57
Recreation, cultural, and religious affairs 1.0% 20
Economic affairs and services 7.0% 140
Interest payments 19.8% 397
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