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Panama to strengthen fiscal management and obtain more public investment. $50 million from Inter-American Development Bank

Tuesday, September 13, 2011

With a $50 million loan from the Inter-American Development Bank, Panama will strengthen its fiscal management to help raise public investment through a sustainable increase in tax revenues and improved efficiency and transparency in public expenditure management.

Panama has one of the lowest tax collection rates in Latin America and the Caribbean, representing about 11 percent of the country’s gross domestic product. In 2004 per capita GDP was $4,470, rising to $7,712 in 2010, making Panama one of the lower middle income countries with the highest economic growth rates.

It is expected that the Government Strategic Plan will carry out previously adopted tax reforms that will result in a permanent 2.5 percent increase in tax revenues.

Original source: Hispanically Speaking News