Panama’s National Assembly has approved, in third debate, the Panama Canal budget for fiscal year 2026, totaling B/. 5.2072 billion for the period running from October 1, 2025, to September 30, 2026. According to the Panama Canal Authority, the approved budget is focused on long-term investment priorities aimed at strengthening the Canal’s competitiveness, sustainability, and operational resilience.
The Canal Authority said the FY2026 budget places particular emphasis on water sustainability, especially through the Río Indio Lake project, while also supporting business diversification, investment in workforce development and well-being, the traditional and Western watersheds, and the long-term sustainable operation of the Canal.
For fiscal year 2026, the Canal projects a direct contribution of B/. 3.1938 billion to Panama’s National Treasury, representing an increase of B/. 404.3 million, or 14.5%, compared with the approved FY2025 budget. In addition, the Canal expects to make B/. 291.1 million in payments to other state institutions, including income tax, social security, educational insurance, and employer-related contributions.
The ACP noted that FY2026 marks the beginning of a new investment cycle designed to reinforce its business model and protect the long-term value of the Panama route. Among the future investments included in the approved budget is the Río Indio Lake project, which aims to secure water supply for more than 50% of Panama’s population while also supporting regional productive activities and helping sustain Canal operations over the next 50 years.
During the budget presentation before the Assembly, Minister for Canal Affairs José Ramón Icaza, Panama Canal Administrator Ricaurte Vásquez Morales, and Deputy Administrator Ilya Espino de Marotta were present. The ACP also highlighted that a socioeconomic census was carried out in the Río Indio watershed to better understand local living conditions, while additional initiatives are already underway in the area, including reforestation, rural aqueduct construction, forest protection payments, road improvements, and family farming education programs.
