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Budget 2027 clears second debate

The Asamblea Nacional approved Bill 644, the 2027 General State Budget of $35,111.7 million, in second debate on Thursday 29 October 2026, La Prensa and TVN reported. La Prensa tallied 51 votes in favour and 20 against, with no abstentions. The bill now moves to third debate, which the Assembly has room to finish on Friday 30 or Saturday 31 October before the ordinary session window closes (TVN 29 Oct for Fri 30 / Sat 31; La Prensa 29 Oct confirms path to third debate).

What passed, and what is still open

  • Total envelope: $35,111.7 million (La Prensa; TVN).
  • Split: $12,839.7 million (36.6%) investment; $22,272 million (63.4%) operating (La Prensa).
  • Debate clock: second debate ran more than 16 hours across two speaking rounds, with a recess after about 2:26-2:35 a.m. Thursday before the Thursday afternoon finish (La Prensa; TVN).
  • Economy Minister Felipe Chapman defended the package as supporting public-finance sustainability, efficiency and transparency, and told TVN the second-debate passage mattered even with the amendments that came from deputies rather than the Executive (La Prensa; TVN).
  • Third debate: still required before the bill can go to the Executive for sanction (TVN; La Prensa).

Contracting exceptions also approved

  • Deputies Benicio Robinson (PRD), Luis Eduardo Camacho (RM) and Manuel Cohen (CD) pushed a change to article 370 that widens the list of institutions allowed to buy technical services, spare parts and equipment without applying Law 22 of 2006 on public procurement, for fortuitous or urgent cases or justified public-interest priorities, each contract under $1 million and not to be fragmented by supplier or service type (La Prensa 28-29 Oct; TVN 29 Oct).
  • Entities already on the exemption list include Metro de Panamá and subsidiaries, Idaan, Etesa, AAUD and Tocumen International Airport. The amendment adds institutions "such as" the Education, Public Works and Government ministries and municipalities when they attend general population-interest matters (La Prensa; TVN).
  • Entities that use the path would still need a published list of covered items and a special contracting regulation approved by the Contraloría and published in the Gaceta Oficial (La Prensa; TVN).
  • TVN reported the article 370 change passed 36-20, while 15 deputies backed the original article; opposition from Vamos (La Prensa 28 Oct; TVN 29 Oct) and business voices including Conep and former ministers (TVN 29 Oct) warned about discretion and missing consultation.
  • Chapman told TVN he would defend citizen resources and that the amendment was a product of talks among deputies, not an Executive proposal (TVN).

What it means for expats

  • This is not your personal tax bill landing tomorrow. It is the State's 2027 spending map clearing its second Asamblea gate, with a third debate still ahead this weekend.
  • Watch the contracting-exceptions fight if you care about how ministries and municipalities buy works and services next year, including quake-recovery related purchases. Wider exemptions can speed urgent buys and also reduce open bidding.
  • Debt-service and investment shares in earlier coverage still matter for the fiscal backdrop expats feel through public works, CSS funding fights and utility investment. What matters now is the process update: second debate done, third debate next.
  • Do not treat second-debate passage as final law. Third debate, Executive sanction and Gaceta publication are still outstanding.

Sources

  • La Prensa - Budget 2027 passes to third debate; new contracting exceptions approved - 29 Oct 2026
  • TVN - Budget 2027 approved in second debate, including Robinson-Camacho contracting initiative - 29 Oct 2026
  • La Prensa - Deputies propose more institutions buy outside the Public Procurement Law - 28 Oct 2026
  • La Prensa - Marathon session: after more than 16 hours, second debate resumes Thursday - 29 Oct 2026