Panama · ECONOMY

Collections rose in the first half of 2026. But the government still fell short of its own budget plan by more than half a billion balboas.

Panama tax revenue grew 4.3% in the first half of 2026, reaching B/. 3,454.3 million.

However, that total still fell B/. 552.7 million short of the budget forecast, according to official figures.

Tax Revenue Growth in Panama

Panama tax revenue rose to B/. 3,454.3 million between January and June 2026, a 4.3% increase over the same period last year.

The figures come from the Dirección General de Ingresos (DGI), the country’s tax collection agency. The DGI, part of the Ministry of Economy and Finance, released the preliminary numbers in August 2026.

Of the total, B/. 3,391.3 million came in as cash and B/.

63.0 million as fiscal documents. The DGI’s release highlights growth in ITBMS, the value-added tax, on sales and imports, plus property tax.

However, exact amounts for each category were not published in the consulted outlets. The DGI’s release also highlights growth in income tax on wages.

However, the exact amounts for each tax category were not published.

Understanding Fiscal Documents

Fiscal documents are tax credit certificates and similar official instruments that taxpayers can use instead of cash to settle tax bills. The DGI counts them inside total tax revenue but reports them separately.

Because the balboa is pegged one-to-one with the US dollar, B/. 1 equals US$1.

The US dollar has been legal tender in Panama since 1904, so all figures here can be read as US dollars too. These instruments are counted as revenue, which explains why the total includes both cash and paper.

Meanwhile, the balboa’s fixed rate simplifies comparisons for international readers.

Budget Miss on Panama Tax Revenue

Despite the growth, Panama tax revenue still came in under what the budget had forecast. Infobae Panamá reported on 18 August 2026 that the shortfall was B/.

552.7 million, or 13.8%, below the budget forecast. This miss is specific to tax revenue collected by the DGI, including fiscal documents.

The budget forecast figure itself was not published, so only the shortfall is known. The shortfall of B/.

552.7 million is a clear miss against the budget forecast. Still, this gap is separate from the wider current revenue miss, which is B/.

627.9 million.

Wider Government Revenue Gap

Separately, central government current revenue reached B/. 4,203.1 million in the first half, against a budgeted B/.

4,830.9 million. That left a gap of B/.

627.9 million, or 13%, below target. Current revenue includes taxes plus non-tax items like fees, dividends, and Panama Canal contributions.

It is a broader measure than tax revenue alone, so the two shortfalls should not be combined. The B/.

627.9 million gap is on current revenue, which is broader than tax revenue alone. As a result, the two shortfalls should not be added together or confused.

Non-Financial Public Sector Gains

Overall, total revenue of the Non-Financial Public Sector (SPNF) reached B/. 7,328.2 million by June 2026, an increase of 8.5% from 2025.

The SPNF covers central government, decentralised agencies, the social security fund, and non-financial state companies. In addition, the accumulated SPNF deficit narrowed to B/.

1,881.2 million, or 1.98% of GDP. That is a reduction of about 11.2% against the same point last year.

Total SPNF revenue rose 8.5%, while the deficit narrowed to 1.98% of GDP. In addition, the central government deficit also shrank during the same period.

Deficit Reduction Continues

The central government deficit also fell, from B/. 3,081.2 million in June 2025 to B/.

2,683.2 million in June 2026. This improvement comes even as revenue missed budget targets.

La Prensa reported that the growth in tax revenue was the main driver behind the current revenue increase. The MEF’s fiscal balance document, published in August 2026, supports this.

The deficit reduction occurred despite the revenue misses against budget. Meanwhile, the MEF’s fiscal balance document, released in August 2026, confirms these trends.

Quarterly Context for Panama Tax Revenue

In the first quarter of 2026, central government current revenue stood at B/. 2,065.9 million, with tax revenue at B/.

1,699.3 million. Direct taxes, including income tax on wages, grew by 2.8% in that period.

The DGI’s first-half release names ITBMS, the value-added tax, on sales and imports, plus property tax, among categories that grew. However, exact amounts for each tax were not published in the consulted outlets.

The first-quarter figures show a slower start, with tax revenue growing only 4.6% in that period. However, the half-year growth of 4.3% suggests a steady pace.

External Commentary on Taxation

La Estrella de Panamá linked the low tax take, flagged by the OECD, to negative current saving as of June 2026. This external attention highlights the challenges of meeting budget targets.

Still, the overall picture is one of growth and narrowing deficits. Every revenue figure on this sheet rose year on year; only the comparison against budget was a miss.

The OECD’s flag on low tax take adds pressure on Panama to improve collections. Still, the current revenue growth of 4.3% is a positive sign.

Preliminary Nature of Figures

The DGI presents its first-half 2026 tax revenue numbers as preliminary. The figures are subject to revision, as is common with such releases.

In short, Panama tax revenue is growing, but not fast enough to meet the government’s own expectations. The shortfall of B/.

552.7 million underscores the gap between performance and plan. Because the numbers are preliminary, they may be revised in later releases.

However, the trend of growth and narrowing deficits is likely to remain.

Frequently Asked Questions

What is the Panama tax revenue figure for the first half of 2026?

Panama tax revenue reached B/. 3,454.3 million between January and June 2026.

How much did Panama tax revenue miss the budget target?

Panama tax revenue fell B/. 552.7 million short of the budget forecast, which is 13.8% below target.

What are fiscal documents in Panama’s tax system?

Fiscal documents are tax credit certificates and similar instruments that taxpayers can use instead of cash to pay taxes. They are included in total tax revenue but reported separately from cash.

Did the government deficit widen in the first half of 2026?

No, the deficit narrowed. The Non-Financial Public Sector deficit fell to B/.

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