Containment and control of public spending, austerity, and transparency, is part of the measures that the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) requires that the three State Organs establish in the face of the current situation faced by the population as a result of the increase of fuel and its consequences on the cost of living.
The union assured that it is unacceptable to contract more public debt to finance the current expenditure of the State’s operation, especially when the increase in the payroll without justification is evident. “The debt must be prioritized for investments that translate into jobs, productivity and competitiveness,” said Marcela Galindo, president of the CCIAP.
The CCIAP pointed out that it is necessary for both the Executive and Legislative Branches to apply these measures to contain public spending and to freeze the hiring of non-priority officials, they also request that paid licenses be suspended; in addition to minimizing the mobilization of high-ranking officials; as well as trips, celebrations, hiring new consultants and advisors, to name a few.
“As we have pointed out on multiple occasions, it is unsustainable to continue increasing state spending at a time when tax collection has decreased as a result of the pandemic.”
Galindo said that “the freezing measures adopted must be temporary and must be covered by a general cut in expenses, not more debt, since this would have a greater impact on citizens in the future. Also, we reiterate the elimination of the recently approved fiscal incentives.”
Regarding the freezing of ten products of the basic family basket, the union recalls that after eight years of price control, it has been shown that this measure creates a market distortion that does not achieve the desired purposes, since the controls, rather than encourage saving, encourage greater consumption.
The CCIAP reiterates that, while the implemented measures provide temporary relief to the population, the National Government must promote job creation through support for micro and small businesses. “There are funds already approved and earmarked for this purpose, access to credit must be facilitated for these companies through joint guarantee plans backed by the State, multilaterals and private banks.”
