The Director General of the Budget, José Rijo Presbot, revealed yesterday that an irregularity in the transfer of funds to the United Nations Development Program (UNDP) was detected in the payroll of the Social Policy Cabinet of the previous Government, to pay salaries abroad , regardless of the salary system.
The last transfer was RD $ 12 million and the termination of a contract to install a software program cost Budget US $ 73,000, said Rijo Presbot.
During a meeting with editors and journalists from the economic area, at the General Budget Office (Digepres), Rijo Presbot specified that it will be President Luis Abinader who will announce the presentation of the tax reform project, which responds to the Fiscal Pact, as part of the ordering of the National Development Strategy (END), pending to be applied since 2015 and mandates the reduction of tax evasion as the first point and the Fiscal Pact as the second point.
However, he indicated that the tax reform will be presented before the end of the year and he emphasized that no one here wants to be taxed, nor does the Government like to have to put them, but there is a real need for financing income in order to meet social demands.
Clarified that the proposal that the government will make is not the one that is circulating now.
Rijo Presbot recognized the probability that the Government will present an Addendum to the General State Budget before an approval of the fiscal reform.
He argued that the country has many demands that must be met. He reported that the Dominican Republic is today the fourth in the world with the lowest public spending and between the sixth and seventh with the lowest fiscal spending.
“If from here to the submission and knowledge in Congress, first by the sectors that have to know it, either in the leadership council (CES) the bill is discussed and submitted, because it is a bill, and known Before the budget is approved in Congress, then the figures with the resources and expenses that would imply incorporating them. The addendum would have to be famous and, in that case, it would improve the distribution of the expenses that we have, ”he said.
It is not rushed
In response to the industrial sector’s approach to reject a hasty tax reform, the general director of the budget affirmed that quite the opposite, since “this is very mature”, and that the problem that here no one wants to pay taxes and they do not want them to get out of your comfort.
Rijo Presbot stressed that it is good to remember that in 2012, with a deficit of RD $ 156,000 million as a result of the elections, President Danilo Medina submitted a tax reform proposal to the CES and when he was told that he had to cut down on client spending, Medina and Leonel Fernández went to Congress where they had a majority and there they approved their package. He stated that it was at that time that the poor were made to pay taxes (ITBIS) on chocolate, coffee and oil, and that is why “now there is no quality to say no now.
The 2022 budget includes more than RD $ 1 trillion, 155,000 million, which includes total expenditures, of which 99.7% will come from the resources of the DGII, Customs and the Treasury. He indicated that as a result of budgetary rigidity, these resources are committed in six laws.
By 2022, only public institutions demanded more than RD $ 157,000 million, for investment projects, improvement of workers’ salaries, technology, transportation and others.
In addition, that in 2022 there will be no extraordinary income from 2021, a 30% increase in the salary of doctors and nurses is contemplated, the affiliates of Senasa will be increased from five million to five million and the increase provided for the military. With all the planned expenses, he said, a deficit of 4.4% of GDP was projected, but the deficit will have to be reduced to 3% of GDP as recommended by the country risk rating agencies. To do this, it seeks to sell assets and reduce investment expenses, said Rijo Presbot. He argued that there is a real need for financing, but this time it is done to achieve goals, reduce past-due debt and improve the current one.
Asset sales
For 2022 they have identified sales of State assets for RD $ 45,000 million, including the EGEHID, and the electricity area, resources that are not in the financing.
Pending 2015
Rijo Presbot recalled that since January 2015 the Fiscal Pact had to be approved, and there have been 18 years of discussion on the need for structural reform of the Dominican system.
Rigidity
Rijo Presbot highlighted that the annual budget of the State is covered by rigidities and in this regard he cited that for this reason 83% of the resources of the DGII and the DGA would be destined to six institutions, equivalent to RD $ 656,332 million, if applied all the laws that specialize funds.
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