The total expenditure executed by the government up to April 29 amounted to RD$299,592.6 millionsome RD$51,115.2 million more than the same period in 2021, the economist said yesterday Nelson Suarez.
He explained that the economic distribution of spending shows that current expenditures consumed 91.72%, with an amount of RD$274,783.6 million, and capital expenditures 8.28%, with a figure of RD$10,289.6 million.
The main expense items according to their nature in the first quarter of 2022 are: the current and capital transfers with RD$122,037.4 million (40.73% of the total) the expenses in remunerations and contributions that consumed 26.24% of the total, with an amount of RD$78,621.9 million, the payment of interests, 19.05% of the total and 18.66% of tax revenue.
In the first 17 weeks of the year some RD$86,701 million have been allocated to cover: RD$57,082.6 million of public debt interest (RD$16,994.7 million more than last year), and RD$29,618.5 million for capital repayment (RD$11,172.2 million above 2021), he said.
The fiscal operations of the Central Government in the first quarter of the year register additional collections compared to the same period of 2021 for an amount of RD$34,012.3 million.
How will the US rate hike affect the DR economy?
It is recalled that the 50 point interest rate increase of the Federal Reserve of the United States, announced last Wednesday, will tighten the conditions of bank credit in the Dominican Republic.
However, the growth that the Dominican economy has been registering and the fact that the central bank had anticipated the turn that the Federal Reserve monetary policymake the country better able to face the impact of interest rate hikes in the United States.
From November 2021 to date, the Central Bank has ordered four increases in the reference interest rate, which have taken it from 3.00 percent to 5.50 percentwhile the Reserve has only made two increases