The expense could be higher than budgeted for being a year before the elections, according to the Regional Center for Sustainable Economic Strategies (CREES).
The budgeted cost of the central government for next year it will exceed the estimate for 2022 by RD$84.185.6 million and could be higher because it is a pre-election year, according to the Regional Center for Sustainable Economic Strategies (CREES).
The central government spending for the year 2023 will amount to RD$1,247,578.1 million, which represents an increase of 7.2% of the expenditures of the Government and 18.1% of the gross domestic product (GDP).
If compared to 2021, the increase in spending is 26.6%, equivalent to RD$262,170.6 million, says an article posted on the CREES website.
Current transfers is the item with the greatest weight within the budgeted public spending for 2023, since they will amount to RD$334,946.3 million.
This item includes transfers to the electricity sector, which will represent RD$70,425.2 million, equivalent to US$1,231.1 million; the allocation of spending to the Cabinet of social policy, which will represent RD$49,937 million, of which RD$7,613 million correspond to the subsidy for liquefied petroleum gas (LPG) for households.
There is also the fuel subsidy through the Ministry of Industry, Commerce and Mipymes that will represent RD$20,101.8 million and current transfers for payment of interest for recapitalization of the Central Bank that will represent RD$27,924.5 million, which is equivalent to 0.4%. of GDP.
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According to CREES, within the current expenditure of the 2023 Budget, the employee remuneration items have a great weight, which will amount to RD$297,646.8 million, and the interest expense on the debt, which will amount to RD$253,545.5 million.
For the 2022 budget, RD$188,291.7 million is contemplated in payment of interest on the public debt.
It states that the political or electoral cycle and the risk related to the prices of energy raw materials, due to the effect they have on spending on transfers and subsidies, could cause an increase in budgeted public spending to be recorded for the year 2023.
Of the central government expenses contemplated in the 2023 budget, 87.6 percent (RD$1,092,403.1 million) correspond to current expenses and RD$12.4 percent (RD$155,175 million) to capital expenses.
