The project that modifies Law no. 80-24, which approves the General State Budget by 2025, presented by the government of President Luis Abinader before the Congress of the Republic, has received harsh criticism from Dominican economists.
Among the professionals who have referred to figure Havanjoe NG Cortiñaswho described the proposal as opaque, until it is explained if the Budget surplus 2024 It was accounting (budgeted vs. executed) or real (income-gasto).
«In 2024, the budget execution resulted in fiscal deficit that exceeds 211 billion pesos, which is equivalent to 3 percent of GDP. Therefore, how is it possible that, if the budget of the year 2024 had a deficit, there was a budget surplus that will be transferred to 2025 and that it will justify the budget modification of 2025? That is why I say that this budgetary modification proposal is opaque, and that government officials must give an explanation to the nation of whether the budget surplus they attribute to 2024 is an accounting or truly real event, ”said NG Cortiñas through a video published in their social rede.
Read more: Budget 2025: Executive submits new proposal to Congress for approval
For its part, the former Minister of Economy, Juan Ariel Jiménez Núñezexpressed concern about reformulation, since, according to his words, the reduction of 50 million pesos is raised to the budget of the Ministry of Education.
«I tell you the most worrying, and here let me into criticism of that reformulation of the budget: They reduce the budget to the Ministry of Education, 50 million pesos. That you will say: “Well, it’s not the big thing.” Yes, but with 50 million, at least 10 classrooms are built. And 10 classrooms are 300 families that have where to send their children. So it is worrying that in the Dominican Republic we are still talking about the fact that there is no classroom for the boys and the school, ”said the professor during an interview in the radio program The Government of the morning.
When asked if the budget review could reduce the need for tax reform, the economist replied: «I still do not understand what the government wants the tax reform and I am asking for a long time to be explained, because it is like when you go down the street and you say:« I need medicine. I need medicine. ” Yes, but to cure, what disease?
Juan Ariel Jiménez stressed that what is necessary is the execution of a structural tax reformknown in the National Development Strategy Law as the Fiscal Pact.
«We have to rethink the way in which the Dominican Republic collection taxes and expenses; If in the current economy we can continue having an advance that breaks hundreds of companies every year, if we truly want to have a tax system where a few pay a lot and most evade the tax. We have to rethink if we want a tax system where there are many companies that, with tax incentives, have abused them, ”said the politician.
He continued: «Then, they are all those things that we have to discuss, but that is not to cover a hole, that is not to put a curite, that is to see what will help us build the Dominican Republic of the future, which we all dream of. That is why it is in the National Development Strategy Law. We have to rethink if we want to continue spending so much in social aid instead of creating the infrastructure that this family will allow with the sweat of their forehead and with their honest work, can be sustained ».
The positive
However, Jiménez stressed that, in this budget modification, it has been given Priority to infrastructure spending. «The truth is that when things are done well, it must be said; You have to be objective in public activity, and I think that must be said and recognize that it is fine, ”he said.
He added that, in addition, in the budgetary proposal Expenditure is increased by approximately 0.5 % of the gross domestic productwhich is correct, because the economy is very slowed.
«The economy, many people feel that it is paralyzed, that there is no weight on the street. So, the government has said is: we are going to get the weights to the street. If people think, and the governor of the Central Bank confirms that the economy has slowed down a lot, because the government says is: we will accelerate it by taking money to the street, ”said the former official.
In the same way, he indicated that it will be through the public investment that the Executive Power will put the money in circulation to boost the economy.
«That is, through increasing the expense that is destined to the construction of infrastructure works: hospitals, neighborhood roads, streets, avenues. That is correct, because, as I have been pointing out, I believe that since 2021 one cannot talk about savings in the government restricting public investment, because that ends up creating major problems, because that is when you have an economic problem in your home and, instead of drinking a little less, leaving a little less, you stop maintaining the car. You may think that you are reducing family spending, but what you are looking for is a future problem, ”said the Hold.
