Panama City, November 7 (Prensa Latina) Government payroll costs in Panama have continued to rise despite announcements of austerity measures, according to a report by the Comptroller General of the Republic.
According to the company, from July 2019 — when President Laurentino Cortizo began his term — through the same month of this year, around 16,936 officers were appointed and monthly salary payments increased by $62.5 million.
The study states that if in July 2019 there were 238,248 civil servants registered, representing a salary expense of $349.5 million that month, three years later, in the same seventh month of the year, the number of civil servants had increased to 255,184 , with a monthly salary expense of $412 million.
The report points out that among the institutions with the largest increase in staff numbers are the Ministries of Education, Health and Safety and the Audit Office, the Judiciary, the National Assembly (Parliament) and the Social Insurance Fund.
The issue was one of the demands made by social and popular organizations during the street demonstrations that paralyzed the Central American country in July this year.
In response, the government announced austerity measures, the outcome of which is unknown, La Prensa newspaper reported.
On July 12, the executive branch approved the establishment of a 10 percent cut process in the state payroll, the introduction of a voluntary retirement program for government employees, and the suspension of pay rises except as required by law, but without giving further details.
On the other hand, analysts such as René Quevedo estimate that the current situation indicates that the number of state workers needs to be analyzed in the context of increasing casualization and nationalization of employment in the economy.
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