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The decentralization of resources from the central administration to the municipalities in Panama is a fundamental process to promote a more efficient and participatory public administration that is closer to the needs of the local population. This process consists of transferring competencies, funds and responsibilities from the central government to the municipal authorities, allowing them greater autonomy to make decisions and manage their own resources. In Panama, decentralization is supported by the Political Constitution and various laws, such as Law 37 of 2009, which regulates the organization and operation of municipalities. The law establishes mechanisms for the transfer of resources and competencies, promoting a more participatory and effective administration in local management. The true decentralization of resources allows for a more balanced and sustainable development, strengthening local democracy and promoting greater citizen participation in public management. In Panama, continuing to strengthen these mechanisms is key to improving the quality of life in communities, reducing inequalities and promoting inclusive growth. The transfer of the Property Tax in Panama is an important mechanism within the fiscal decentralization process, which allows a portion of the revenues collected by the State through this tax to be transferred to municipalities so that they can finance local services and projects.
