According to Treasuryduring the period January-December 2021, the income of the Central administration show a year-over-year increase of 33.0 End up%, amounting to 841,184.7 million pesos, equivalent to 15.6% of the Gross Domestic Product (GDP) estimated for the year and representing a compliance of 101.3% with respect to the Reformulated Budget.
The Treasury document “Fiscal situation December 2021” also indicates that tax revenues totaled 773,966.1 million pesos, registering a year-on-year variation of 40.6% compared to the same period in 2020, and representing an execution of 101.3% of the budgeted.
The items that have most influenced the favorable evolution of total income have been the collections for the Tax on Transfers of Industrialized Goods and Services (Itbis) and the tax on income, profits and capital gains, items that They explain 68.3% of the growth registered at the end of the year.
Similarly, the Treasury highlights that the items that have shown the greatest growth during the period are property taxes (75.5%), taxes on trade and commercial transactions (49.4%), whose evolution responds to the synchronized reopening of the Dominican economy and its commercial partners, and taxes on income, profits and capital gains (40.6%).
It should be noted, adds the Treasury, that the year-on-year drop in donations received (-76.0%) responds to the efforts made by the Executive power to mobilize resources from other general government units to the Central administration during the most critical moments of the pandemic in 2020, in order to cushion the initial drop in collections.
Regarding the collection by collection office, the Treasury, in its quarterly and accumulated monitoring of the public finances of the Dominican Republic, explains that there is an increase in the income collected by the General Directorate of Internal Taxes (DGII) and the General Directorate of Customs (DGA) of 35.9% and 50.6%, respectively. The income captured by the Treasury was reduced by 29.6%.
Treasury explains, through the document, that the total expenditures of the Central administration during the period January-December 2021 they show a year-on-year increase of 0.3%, amounting to 1,004,633.2 million pesos, which represents 18.6% of GDP. Of this amount, primary spending, which excludes interest payments, totaled 836,621.9 million pesos.
It indicates that, when breaking down the expenses according to their participation, the remuneration of the employees represented 23.5% of the total expenditure, the interests 16.7%, the donations 17.9%, the use of goods and services 11.2% and the rest of the games 30.7%.
The items that make up the expenditures with the most significant variations in the period were subsidies (92.9%), social benefits (-50.7%) and other expenses (-35.4%).
In addition, the increase in spending with the greatest incidence was subsidies, due to the increase in hydrocarbon prices, particularly oil derivatives, which led the government to allocate resources to subsidize fuels and avoid increases for citizens.
Similarly, the state institution points out that the incorrect practice carried out by previous efforts that involved leaving out of the budget balance the expenses related to the commitments acquired by the Electricity Distribution Companies has been eradicated.
The changes implemented in terms of classification of expenditure items have made it possible to reflect and make transparent the “true” fiscal deficit and the amounts allocated to the electricity sector. As a result of this, subsidies to the electricity sector showed an increase of 73.2% compared to their value in 2020, amounting to 47,397.6 million pesos.
In addition to the behavior of spending exhibited to date, this has experienced significant reductions due to the prioritization process and increased efficiency in the quality of public spending. Among the items that show decreases related to these efforts are Diets and Representation Expenses (-53.7%), Textiles and Clothing (-54.8%), Miscellaneous Products and Supplies (-54.1%) and Paper, Cardboard and Printed Products with ( -62.8%), for a total saving of RD$11,069.1 million.
During the period in question, the document indicates, capital spending amounted to 152,964.1 million pesos, showing an increase of 16.5% compared to 2020. It should be noted that the increase in this item of spending occurred mainly in the last quarter of the year (157%), due to the fact that the legal situations of innumerable contracts in different government agencies made it difficult to materialize the execution of capital expenditure during the first months of the year, which meant that some projects executed most of their approved budget during the year. last quarter of the year.
Among the projects to be highlighted are: the construction of Line 2 of the Cable Car of Santo Domingo, Santo Domingo Oeste and Los Alcarrizos, executing 100% during the last quarter (1,800 million pesos), the construction of Line 2- C of the Santo Domingo Metro Sections: Alcarrizos-Luperón, with 100% (1,300.4 million pesos) and Expansion of the Service of Line 1 of the Santo Domingo Metro with 97% (1,082.4 million pesos).
It should be noted that during the fourth quarter total expenditures amounted to 362,128 million pesos, showing an increase of 15.8% compared to the execution registered in the same period of 2020. This increase in year-on-year terms is partially explained by the increase in resources allocated to subsidies (150%), mainly subsidies to private companies (439%), given the acceleration in the rise in international prices of hydrocarbons experienced in this period of 2021 and the measures implemented by the Government, adds the document.
