President Cortizo signs reforms to the Decentralization Law
The President of the Republic, Laurentino Cortizo, sanctioned this Friday, May 15, the reforms to Law 37 of 2009 on decentralization in an act at the Palacio de Las Garzas.
In the presence of deputies and some mayors of the country, Cortizo said that the reforms ensure the budget rescue of local governments affected by the Covid-19 pandemic and that it guarantees the employment of more than 12,500 municipal employees.
"It is an act of justice with the authorities of the communities, since they are the ones who are in direct contact with the citizens ... and in this 2020 they are in a difficult situation (financially)," he said.
He added that this new law leads to the budget rescue of local governments so that they can cover their basic operating expenses.
This new rule empowers municipalities to allocate, during this year, 100% of the final amount they receive in form of Property Tax to operation.
In article 1, a transitory paragraph indicates that the municipalities may, during the term of 2020, allocate the total amount they receive from transfers from the Central Government, as Property Tax, to cover their operating expenses. They can use the uncommitted balances for fiscal years 2016, 2017, 2018 and 2019.
The municipalities will distribute the amount they receive in concept of the Property Tax between the communal boards and the mayors, in proportion to the operating expenses, taking into account the services they provide, the territorial extension and the population density.
During the ceremony, the President stressed that yesterday the Government took an important step by launching the third phase of the digital plan of the Panama Solidarity Plan so that 149,684 people can purchase food during this emergency through their identity card. personal.
This third phase favors the townships of Tocumen, December 24, Las Garzas, Mañanitas, Pacora, La Mesa de San Martín, Pedregal, Alcalde Díaz, Caimitillo, Chilibre, Ernesto Córdoba and Las Cumbres.
"It is an act of justice with the authorities of the communities, since they are the ones who are in direct contact with the citizens ... and in this 2020 they are in a difficult situation (financially)," he said.
He added that this new law leads to the budget rescue of local governments so that they can cover their basic operating expenses.
This new rule empowers municipalities to allocate, during this year, 100% of the final amount they receive in form of Property Tax to operation.
In article 1, a transitory paragraph indicates that the municipalities may, during the term of 2020, allocate the total amount they receive from transfers from the Central Government, as Property Tax, to cover their operating expenses. They can use the uncommitted balances for fiscal years 2016, 2017, 2018 and 2019.
The municipalities will distribute the amount they receive in concept of the Property Tax between the communal boards and the mayors, in proportion to the operating expenses, taking into account the services they provide, the territorial extension and the population density.
During the ceremony, the President stressed that yesterday the Government took an important step by launching the third phase of the digital plan of the Panama Solidarity Plan so that 149,684 people can purchase food during this emergency through their identity card. personal.
This third phase favors the townships of Tocumen, December 24, Las Garzas, Mañanitas, Pacora, La Mesa de San Martín, Pedregal, Alcalde Díaz, Caimitillo, Chilibre, Ernesto Córdoba and Las Cumbres.