​Just for the record: new fiscal 2021 figures has published by MEF. The NFPS deficit in 2021 was revised upwards

PANAMA - In Brief 11 Apr 2022 by Marco Fernandez

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On April 4, the Ministry of Economy and Finance (MEF) issued its revision of the Balances of the Central Government and the Non-Financial Public Sector for 2021. The net deficit of the NFPS changed from 5.53% of GDP to 6.66% of GDP in 2021 (US$ 3.523 billion to US$ 4.238 billion) or 20.3% larger. In the same document, the deficit/GDP ratio in 2020 was revised from 9.67% to 10.23%. Both ratios are within the range of the Fiscal Responsibility Law for those years but closer to its ceiling of 10.5 percent and 7.5 percent, respectively. Total revenues of the NFPS in 2021 were adjusted from US$ 11.56 billion in the previous report to US$ 11.51 billion in April. The Central Government figures remained the same as before. Current expenditures of the NFPS went up by US$ 178.5 million (a correction of 1.5%) explained mainly (88.3%) by the increase in Central Government outlays. The revision of the number of capital expenditures was larger in absolute and relative terms (US$ 486.4 million, or 15.8% of the previous estimate). For the Central Government, the new amount of public investment went up from US$ 2.87 billion to US$ 3.2 billion, or 5% of GDP. The increase in recorded current expenditures by the Central Government was the result of US$ 125.1 million additional transfers payments to households because of the pandemic. The payroll payments registered in 2021 were US$ 8.6 million lower than previously published, but the figure for 2020 was revised upwards by US$ 46.1 million.Below the line, the financing of the NFPS deficit was US$ 4.2 billion, lower by US$ 1.2 billion than in 2020, 71 percent financed by external debt. The estimation of the nominal GDP was adjusted from US$...