Total revenues plummet in June by the adverse impacts of Covid-19

The coronavirus (Covid-19) has generated an unprecedented economic, fiscal, social and health crisis since March, when the first case was diagnosed in Panama.

So far this year, the month most affected by the adverse impacts of Covid-19 was June. Panama had estimated turnover of $853.1 million and only $308.4 million was obtained in current revenue from the central government – $544.7 million less than projected.

During the first semester of 2020, revenue collection was over $1.38 billion below budget.

From January to June 2020, $3.6 billion total revenue was estimated and $2.23 billion was obtained.

The cumulative drop was 38.3% when compared to the pre pandemic forecast.

During this period, almost all tax revenues yielded negative results, the most affected being the collection of legal income tax, the ITBMS sales, the selective consumption tax, the ITBMS for imports, and the notice of operation of companies .

Meanwhile, non-tax revenue was $ 260.7 million less than that contemplated in the collection plan for the first half of 2020.

This situation puts the State in trouble, whose budgetary needs grow at the pace of the pandemic and continues with a payroll that exceeds $300 million in monthly expenses.

When comparing the collection of the current revenues of the central government of the year 2020 with respect to 2019, the results also denote a significant drop in collections.

During the accumulated period from January to June 2020, the current revenues of the central government decreased by $ 1.15 billion (-34.1%) compared to the same period in 2019.

In the first six months of 2020, the total revenue was $2.2 billion, lower than the $ 3.385 billion in the same period of 2019.

MOCTEN

 

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