The Panama Canal’s budget for fiscal year 2026 has been approved by the Cabinet Council, totaling B/.5.2072 billion. The plan covers the period from October 1, 2025, to September 30, 2026, and focuses on long-term investments, particularly water sustainability through the Río Indio Lake project.
The FY2026 budget projects a direct contribution of B/.3.1938 billion to the National Treasury, up B/.404.3 million, or 14.5%, compared to FY2025. An additional B/.291.1 million will be paid to other state entities in taxes, social security, and insurance contributions.
Canal officials emphasized that the new fiscal plan reflects the challenges of climate change, technology shifts, and geopolitical uncertainty, while ensuring the Canal’s long-term competitiveness. Following Cabinet approval, the budget will now move to the National Assembly for consideration.
Río Indio Lake Declared Project of Public Interest
The government also addressed concerns from Río Indio watershed communities about land speculation tied to the planned lake. Two key measures were adopted: a legal definition of the project’s area of influence and an official declaration naming the lake a project of public interest.
These steps mean that any land sales, construction, loans, or new activities in the area will require prior approval from the Panama Canal Authority. State institutions will also be required to coordinate efforts to protect residents’ rights and support community needs.
The Río Indio Lake is designed to secure water for more than half of Panama’s population, sustain local economic activity, and safeguard the Canal’s operations for the next 50 years.
