If external events had not had an impact, the current government would only register a debt of 6 billion dollars
The minister of Treasury, José Manuel (Jochi) Vicentejustified yesterday the loans submitted by the Government to the National Congress, after indicating that the debt has only increased by 13 billion dollars, of which RD$200 billion were allocated to respond to the covid-19 problem; RD$100 billion to address the drop in collections for 2020 due to the pandemic and RD$80 billion as a subsidy as a result of the inflationary issue.
“As long as there is a fiscal deficit, there will be a need to borrow. Debt has to make up for what tax collections don’t make up for,” he said.
The official was approached about this and other economic topics during his participation in the first Corripio Communications Group Lunch of this year.
According to the official, if these external events had not occurred, currently the Government only recorded a debt of 6 billion dollars.
He recalled that it was with money that was borrowed that the vaccines were bought, with which 70 percent of the population was inoculated.
“We were one of the most effective countries in the vaccination process against covid-19,” he said.
In response to those who criticize the loans, he said that the International Monetary Fund (IMF), in its article 4, says that “the debt of the Dominican Republic is sustainable.”
Balance
When taking stock of 2022, Vicente considers that it was a positive year, because they were able to face two situations with good results; the Russia-Ukraine invasion and the atmospheric phenomena that impacted the country (Fiona and the trough that affected Greater Santo Domingo).
The war implied effects on inflation that caused an intervention by the Government of around 70 to 80 billion pesos that were not budgeted or programmed in the General Budget of the Condition.
According to what was explained, in Fiona, the economic impact was 20 billion pesos.
“It was a very challenging year,” he specified.
Citing achievements, he referred to the growth of the economy that closed at 5 percent and inflation at 7.3 percent, below many Latin American countries.
He also mentioned the recovery of employment post-pandemicthe improvement of the country’s risk rating and the perception index of the fight against corruption.
However, he added that the Government is trying to mitigate the inflation that affects citizens as much as possible.
“We are managing a government with important fiscal limitations and doing it in the most responsible way in the current situations,” he specified. At the meeting, the minister was accompanied by María José Martínez, Vice Minister of Public Credit.
fuels
When asked about the possibility of fuel prices falling as a result of the decline in the barrel of oil in recent weeks, the official explained that this will be possible when it is not necessary to subsidize and the price remains stable.
“It will go down when the price of oil reaches a level below 70 dollars so that there is no subsidy and a certain time elapses that there is evidence of stability in that price, so that we do not have to reverse a decision because the price went up from from one week to the next,” said the representative of the economic area of the Government.
Similarly, Vicente explained that in the 2023 Budget there is an item of 20 billion pesos to subsidize fuels.
Likewise, he said that the lines related to health, education and citizen security, among others, have been prioritized.
Businessmen Manuel and José Alfredo Corripio were present at the first meeting of this year.
