Panama’s draft 2027 budget has proposed allocating zero dollars for electricity at the Gorgas Commemorative Institute for Health Studies (ICGES), the country’s leading public health research institution, prompting pushback from lawmakers and a pledge from the Ministry of Economy and Finance (MEF) to reevaluate the funding.
What Happened
The ICGES, known as the Gorgas Institute, requested $27.3 million for 2027, but the MEF recommended $21.5 million — a cut of $5.8 million, or roughly 21%. The entire reduction falls on the operating budget, which drops from $20.1 million to $14.3 million, while investment funding remains at the requested $7.2 million.
Director Nicanor Obaldía presented the figures to the Budget Commission of the National Assembly and warned the reductions would affect the institute’s operations. For comparison, the institute’s total 2026 budget is $35.3 million.
The cuts touch personnel services, non-personal services, and materials and supplies. Medical supplies fall from $1.17 million to just $146,000, while cleaning supplies drop from $23,500 to a mere $60. Water retains a $60,000 allocation, but electricity is set at zero dollars. Telecommunications, transmission services, per diems, and other operational expenses are also reduced.
The figures drew sharp questions from lawmakers. Commission President Eduardo Vázquez asked the MEF to explain why basic services were “in the red,” noting a roughly $5.7 million gap between the requested and recommended amounts, and requested the analysis supporting the figures.
Deputy Yamirelis Chong of the Vamos coalition questioned how a $34 billion national budget could leave a public health institution without basic services. She argued budgeting should start from institutions’ basic operational needs and defended funding the institute’s research, saying public health studies detect problems early and prevent greater state expenses.
Valery González of the MEF’s Budget Directorate acknowledged the proposed distribution affects the institute’s operations. He explained the recommendation was initially based on a budget cap tied to execution levels in previous years, and committed to reevaluating the operating allocation. “The amount they requested will be revalued and we will definitely give them the funds necessary for their operation,” he said. He added that he will meet with Obaldía and his team to review which line items need reinforcement.
Background
The Gorgas Institute was created in 1921 by President Belisario Porras and officially inaugurated its facilities on August 17, 1928. It leads scientific research in health sciences and serves as Panama’s central reference laboratory for public health, employing more than 600 people — roughly 60% technical and scientific staff and 40% administrative personnel.
During the COVID-19 pandemic, the institute’s scientists assessed population exposure to SARS-CoV-2. Its planned 2027 scientific agenda includes research on yellow fever, dengue, and oropouche virus, along with studies of bacterial, parasitic, and fungal diseases, vector surveillance, water quality monitoring, wastewater virus detection, and food analysis for heavy metals and microbiological contamination.
The investment figure also marks a significant decline: while the $7.2 million recommended for 2027 matches the institute’s request, it falls well short of the $17.3 million allocated for investment in 2026. The MEF said investment will be analyzed separately due to low execution levels in recent years, partly related to Comptroller’s Office processes and contractor execution, though it noted investment performance is improving this year.
What This Means for Panama
The zero-dollar electricity line has become a flashpoint in the broader 2027 budget debate, illustrating how cap-based allocation methods can clash with the real operational needs of strategic institutions. Lawmakers from both the commission leadership and the opposition have signaled they want the MEF to justify its numbers with documented analysis.
The Budget Commission has requested the MEF’s supporting analysis and left open the possibility of revising the allocation in the remaining weeks of budget deliberations. González’s public commitment to provide “the funds necessary” suggests the electricity line and other operating cuts are likely to be adjusted before the budget is finalized.
At stake is the continuity of key public health functions — research, diagnosis, and epidemiological surveillance — including the institute’s investment plan to strengthen rapid-response laboratories with biomedical equipment, biosecurity measures, electrical backup, and training, as well as wastewater-based epidemiological surveillance and genomic monitoring of pathogens such as influenza, dengue, and HIV. The flagship Campus Gorgas project currently stands at roughly 23% progress.
This story was originally reported by La Prensa.