The Government concluded the budgetary execution of the first eleven months of the year with a favorable balance in terms of income and a slight delay in expenses.
The global fiscal figures projected that the income goals would be met by the end of 2022, but that the expenses, mainly capital, would remain unfulfilled.
From January 1 to December 2, 2022, the Government had executed total income of RD$867,909.6 million, a figure that represented 92.33 percent of the estimate for the full year, which is RD$939,917.5 million.
To cover the estimated amount of income, RD$72,007.9 million remained to be accrued, an amount that was easy to execute for the remainder of the year because December is a month of high consumption of goods taxed by the Tax on Transfers of Industrialized Goods and Services ( Itbis) and excise taxes, two of the tax figures with the greatest contribution to tax collections.
The average income from January 1 to December 2 was RD$78,900.87 million per month, a figure that can be covered in the remainder of 2022, and even register a slight surplus in relation to the reestimate of the Supplementary Budget.
Expenses, meanwhile, walked at a slower speed than income. And the greatest lag was in capital expenditures, which are those that include the investments that the Government directs to works and infrastructures.
The global execution of the expenses contemplated in the General State Budget 2022 represented, at the date of the analysis, a weighting of 85.76 percent, with an amount of RD$11,016,873.7 million, out of an estimate of RD$1,185,688.2 million.
To cover the spending goal, RD$168,781.5 million remained to be executed. In the first 11 months of the year, the Government’s average spending was RD$92,443.2 million, so to meet the goal in less than a month remaining from the cut-off date, it would have to almost double the average.
Some details
The execution of current spending, which represents almost 90 percent of total spending, was faster than the consolidated expenditures, presenting a level of 89.45 percent of execution, with an absolute amount of RD$911,494.1 million, from an estimate for the full year of RD$1,018,906.7 million.
The figures are contained in an execution report made by the General Directorate of Budget (Digepres). Capital expenditures, which are the ones that drive the economy and contribute to the creation of wealth, presented an execution of 63.18 percent from January 1 to December 2.
The amount executed in that period amounted to RD$105,379.6 million, and the amount projected for the entire year is RD$166,781.5 million.
Last year, capital expenditures remained lagging behind during the first three quarters, but in the last quarter they accelerated, even promoting an expansion of the economy above forecasts.
During this year the scenario was repeating itself, although the expansion of capital spending in the last stretch of the current period was less than that of the previous one.
A component of current spending that had a higher proportion of execution than the other budget variables was the payment of interest on the public debt. According to the Digepres report, as of the cutoff date, 90.16 percent of the estimate for the entire year had been paid, which is RD$188,291.7 million. The amount paid was RD$169,782.4 million, a sum equivalent to 16.69 percent of the total expense accrued until then.
