Panama Government revenues climbed to $3.309 billion from January to July this year.
That was an increase of $437.5 million or 15.2% over the same period of 2011 but continued growth in public spending, created a GDP (gross domestic product) first half deficit of $428 million in the non-financial public sector.
The increase in revenue is a direct consequence of economic growth, according to the administration.
Tax revenues, accounted for 81% of the total, $2.695, billion a 22.5% increase over the first seven months of last year.
The Ministry of Economy and Finance (MEF) expects to close 2012 with a deficit of 2.5% of GDP, about $860 million.
This deficit will be within the limits of the revised Fiscal Responsibility Act, according to the MEF.
Local and international analysts have warned of the need to curb spending in the medium term to maintain the solvency of public finances.