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The Distribution of the Benefits of Public Expenditure in Panama

In this study of the regional and sectoral distribution of public expenditure benefits in Panama, current expenditures of the ordinary budget and investment outlays of development plans are analyzed separately. Implicit measures of public expenditure distribution are also included. The study is based on agricultural and demographic census reports, government budgets, and other data sources. The results indicate that Panama's income is rather poorly distributed among both regions and families. The Gini coefficient varies from .51 to .69 between provinces and sectors. Public expenditures tend to reduce income inequalities, investment outlays more so than ordinary expenditures.