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    Home AMERICAS Panama

    Mayor of San Miguelito limits transfers to community boards to $8,000 per month

    The Analyst by The Analyst
    September 18, 2026
    in Panama
    Mayor of San Miguelito limits transfers to community boards to $8,000 per month


    The Mayor’s Office of San Miguelito set a limit of $8,000 monthly for each community board for the execution and payment of transfers financed with resources from the General Fund during the fiscal year 2026.

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    The measure was established by the Mayor Decree No. 14-2026published this Thursday, September 17 in the Official Digital Gazette, and responds to the financial situation of the municipality, whose collection continues below the income anticipated in this year’s budget.

    The decree establishes that the restriction will be maintained as long as the collection and financial availability are insufficient to meet the budgeted level of expenditure.

    The provision specifically covers the object of expense 646, called “Transfer to community board”and orders the Municipal Treasury to apply the limit of $8,000 per month to each of the district’s community boards.

    The Municipality of San Miguelito approved a budget for income and expenses for 2026 whose General Fund amounts to $21,141,888.

    However, according to the financial reports presented by the municipal treasurer and cited in the decree, the estimated collection for the end of the year continues to be below the budgeted income.

    Mayor Irma Hernández Berrío points out in the document that this situation requires preserving the liquidity of the General Fund to guarantee the continuity of municipal public services and comply with legally required obligations.

    The Mayor’s Office also recognizes that the measures previously adopted to improve revenues failed to close the gap between what was budgeted and what was actually collected.

    Among them is the Municipal Agreement No. June 30, 2026which established a moratorium to recover the delinquent portfolio and strengthen municipal collection.

    The decree clarifies that the limit of $8,000 per month does not mean a reduction in the budget allocations approved by the Municipal Council.

    The rule expressly establishes that the measure does not reduce, cancel, transfer or reassign the items contemplated in articles 57 to 65 of Municipal Agreement No. 80 of 2025, which approved the 2026 budget.

    In other words, the Mayor’s Office maintains the items within the current budget, but temporarily limits how much it can execute and pay each month due to the availability of resources.

    The measure will remain in force as long as the lack of income and liquidity persists.

    Background

    This is not the first time during 2026 that the San Miguelito Mayor’s Office adopts measures to contain spending.

    He Mayor Decree No. 10-2026of July 1, established containment measures and initially set a limit for transfers to community boards. However, that provision was repealed the following day by Mayor Decree No. 11-2026.

    The new decree also incorporates the opinion C-SAM-78-26 of the Administration Attorney’s Officebroadcast on September 4. According to the Mayor’s Office, this opinion specifies that spending containment constitutes a preventive and temporary measure that allows the availability of items to be frozen based on objective criteria, as long as it does not modify the amounts or the structure of the approved budget.

    The new measure is based precisely on this criterion and on the need to temporarily adjust the execution of spending to the real availability of resources.





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