Public debt per inhabitant will rise to RD$277,041 next year, according to an analysis by the Regional Center for Sustainable Economic Strategies (CREES)
The public debt of Dominican Republic per inhabitant will rise next year to RD$277,041, according to an analysis carried out by the Regional Center for Sustainable Economic Strategies (CREES).
It specifies that the debt of the non-financial public sector does not include the debt of the central bank and other liabilities of Conditionfor which the amount would be higher if these government commitments were taken into account.
The 2023 budget contemplates increasing per capita indebtedness by RD$19,374.9, which represents a significant figure, he says.
It argues that the levels of public spending and the rate of indebtedness of the Dominican State highlight the need to establish fiscal rules that ensure prudent and responsible management of public finances.
It reiterates that an increase in the level of indebtedness implies a higher interest payment and having to seek more financial resources to repay the debt.
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That implies, he said, higher taxes for citizens and even more indebtedness when they are not covered by tax revenues.
On the other hand, the average cost per inhabitant of spending on Central government budgeted for the year 2023 will be equivalent to RD$116,474.7.
This data was obtained by dividing the public spending budgeted for the year 2023 by each Dominican citizen.
The executive vice president of CREES, Miguel Collado Di Franco, stated that the expenses contemplated in next year’s budget were divided into different lines according to functional classification.
Each inhabitant, in the event that the government decides to transfer the expense bill, would have to pay RD$25,792 in education, RD$23,671 in public debt interest, RD$13,095 in social protection and RD$11,418 in health.
He recalled that government spending amounts to RD$116.474 million for next year, according to the 2023 budget.
The project of the General State Budget Law for 2023 proposes expenses for the central administration for the sum of RD1,247,578.1 million.
The total income of the Central Government amounts to RD$1,040,005.5 million next year, which is equivalent to 15.1% of the gross domestic product (GDP) estimated for 2023.
