The Government went through the first quarter of the year with a budget execution proportional to the time elapsed, showing a greater speed in the materialization of income than in expenses.
This budget execution of the first three months of 2022 produced a fiscal deficit proportionally lower than projected, despite the difference in speed in the execution of income and expenses. Expenses exceeded income by 8.2 percent, equivalent to RD$18,051 million.
Due to the slight lag of executed expenses compared to accrued income, the forecast fiscal deficit was in a lower proportion, appearing to be less value at the end of the year than the original estimate.
The deficit amount realized until April 1 represented 10.32 percent of the estimate for the full 2022, which is RD$174,794.8 million.
Between January 1 and April 1, the income earned represented 25.11 percent of the amount approved for the entire period, according to figures from the General Directorate of the Budget (Digepres). In absolute values, in the period referred to, the income registered by Digepres cumulatively totals RD$218,909.6 million, out of a goal of RD$871,485.9 million for the full year.
Current revenues, which represent the qualified majority of budget resources and are generated from tax collections, amounted to RD$218,060.9 million, and represented 26.43 percent of the projected amount for the entire period, some RD$824,909.3 million.
projections
This early surplus behavior of current revenues projects that as the calendar goes by, collections can be made above the goals, especially those based on income taxes because from April the dates of presentation and payment of the most companies. And after the declaration and payment processes, there are the advances.
Capital inflows continue to skid. From an estimate of RD$46,576.6 million for the full year, at the end of the first quarter, which is equivalent to 25% of the period, the income of this category collected by the Government amounted to RD$848.7 million, a figure that represents only 1.82% of the goal for 2022. Last year, when in the original budget it was foreseen to collect some RD$89,000 million, it was necessary to cut those forecasts in the complementary budget that was submitted in July and even so, the goal could not be met.
Executed between January and April
On the expenditure side, the amount executed between January 1 and April 1 of the current year amounted to RD$236,960.6 million, a figure that in relation to the RD$1,046,280.7 million projected for the entire period, represented an execution of 22.64 percent , reporting a proportional deceleration.
In all components of spending, except for the payment of interest on the public debt, the execution at the date of the analysis, the proportionality was slightly slower than the speed of income.
Current expenses, which largely dominate the composition of the General State Budget (PGE), reflected a proportionality that is slightly lower than that of the calendar.
The accumulated amount amounted to RD$217,982.8 million, equivalent to 24.07 percent of the estimated amount for the full year, which is RD$905,574.3 million.
a lagging part
Capital expenditures, another component lagging behind in its execution in recent years, recorded an accumulated amount as of April 1 of RD$18,977.8 million, to reach a weight of just 13.48 percent of the projected amount for the entire fiscal year, about RD$ $140,706.4 million. To fill the quota for capital expenditures, which are essentially the public investments made by the Government in infrastructure works for economic and social development, the amount to be executed in the last three quarters of the year would be RD$121,728.6 million, about RD $40,576.2 million on average every three months. As for interest on the public debt, which is one of the largest components of current spending, the amount of RD$52,761.2 million accumulated during the analyzed period, represents 27.32 percent of the total projected for the full 2022, which is from the RD $193,105.8 million. The component with the greatest speed in budget execution is financing, defined in the Budget as “financial sources” and which as of April 1 accumulated an amount of RD$146,499.0 million, a figure that represents 51.56 percent of the amount approved as financing in the budget. PGE 2022, which amounts to RD$284,079.4 million. In the counterpart of the financial sources, represented by the “financial applications”, which represent payments to capital or amortizations of public debt, the evolution to the period analyzed represented 25.29% of the installments contemplated for 2022.
