The National Association of Young Entrepreneurs (ANJE) sees the results of the fiscal closure of public finances in 2021 as a good sign and as an important milestone to continue with the economic recovery of the Dominican Republic.
With the increase in collections by 12.7% compared to budgeted Initially, there was evidence of a better level of planning in terms of spending and income.
In addition, the capital expenditure, in accordance with the initial budget, was 100% executed.
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These situations demonstrated high levels of budgetary discipline resulting in the reduction of fiscal deficit by approximately RD$15,000 million, going from the reformulated budget of RD$159,846 to RD$144,778.6, equivalent to 2.7% of GDP at the end of the year.
“The efforts of the current government management to streamline and rigorously plan public spending are indicators that will have a positive impact on the business climate and on the competitiveness levels of the Dominican Republic”, said Luis Manuel Pellerano, president of ANJE.
He added that, “Although the levels of debt continue to be high, it is important to highlight that the 2021 Reformulated Budget had lower financing needs than the initial budget, which implied a reduction of 5.5 percentage points in the debt of the non-financial public sector and in interest payments as a proportion of income. taxes by 4.92 percentage points.”
“As a business association that brings together the thinking of young entrepreneurs, we aspire to continue taking the necessary actions to continue efficiently managing the National Budget for 2022 and beyond, and we highlight the reduction in public sector debt levels as a good sign. non-financial and interest as a proportion of tax revenue during 2021”, Pellerano pointed out.
