The Plenary of the National Assembly approved this October 30, in third debate, bill No. 644 that establishes the General State Budget for the fiscal period of 2027set at an amount of $35,111.7 million. The norm organizes the distribution of state resources for health, education, security, infrastructure and social services. However, the legislative process concluded with the incorporation of a reform that relaxes the rules of the Public Procurement Law for various government institutions.
During the discussion of the initiative, the deputies Benicio Robinson, Manuel Cohen and Luis Eduardo Camacho presented a modification to article 370 of the project. The proposal exempts ministries and public companies from the application of ordinary contracting legislation in the acquisition of technical services, spare parts and equipment when the amount is less than $1 million.
KEY DATA OF THE 2027 BUDGET
Global amount: $35,111.7 million allocated for fiscal year 2027.
Touch on contracting: Exception to the Public Procurement Law in purchases of up to $1 million for technical services, spare parts and equipment.
Grounds for exception: Applicable under fortuitous situations, justified urgency or priority need of public interest.
Beneficiary entities: Metro de Panamá, Idaan, Etesa, Tocumen, Aseo and the ministries of Education, Public Works and Government.
Established controls: Requires the creation of special regulations per institution, which must have the endorsement of the Comptroller General’s Office and be published in the Official Gazette.
The exception applies in fortuitous, urgent situations or due to circumstances of public interest with priority attention. Among the beneficiary entities are the Panama Metro, SA, the Institute of National Aqueducts and Sewers, the Electric Transmission Company, SA, the Urban and Home Cleaning Authority and the Tocumen International Airport.
Likewise, the provision covers the ministries of Education, Public Works and Government when they address matters of general interest related to population rights.
The approved reform establishes that purchases under this scheme may not exceed $1 million and establishes that said limit will not be cumulative by provider or type of technical service, also requiring the avoidance of contractual fragmentation. To execute the measure, each entity must prepare a list of the goods or services required and adopt a special contracting regulation, which must have the approval of the Comptroller General of the Republic and its publication in the Official Gazette.
The approval of the budget occurred after marathon days in the Legislative Body. The second debate session lasted from the afternoon of Wednesday, October 28 to the early hours of Thursday, October 29, the day on which the regulatory change was introduced, which generated immediate rejection by the opposition benches.
Opponents point out that the modification introduces an extraordinary mechanism of direct contracting within the budget law, which reduces rigor in the oversight of public spending and opens the door to acquisitions with less citizen scrutiny in entities that manage multimillion-dollar budgets.
Shirley Castañedas, president of the National Assembly signing the bill approved in the third debate.
