The Minister of Finance, Jochi Vicente, reported that capital spending between January and June of this year was RD$61,125.9 million, equivalent to 0.9% of the gross domestic product (GDP), showing a year-on-year increase of 31%, equivalent to to an additional RD$14,489.7 million.
Vicente specified that this increase is explained by RD$7,583.5 million of works and constructions in progress and the increase of RD$7,205.7 million in capital transfers, highlighting those made to the Trust for the Development of the Mass Transportation System of the Dominican Republic (Fitram ), which executes the construction of the monorail and the cable car of Santiago.
Within the expenditure made on investment projects during the first semester, in terms of public transport, the construction of Line 2C of the Santo Domingo Metro (RD$4,698.9 million), the Los Alcarrizos-Luperón section and the second line of the Santo Domingo Cable Car stand out. Sunday (RD$1,389.1 million).
He explained that RD$2,731.5 million were allocated to the MiVivienda trust for the construction of 1,818 housing units, RD$1,145.4 million for the reconstruction of houses in San Luis, RD$803.5 million for the improvement of 100,000 homes in Santo Domingo and RD$713.5 million for the construction of the Dajabón Border Perimeter Fence.
In terms of income, the official pointed out that collections, including donations and direct funding from institutions, amounted to RD$539,445.1 million during the first half of the year, for a 102.9% compliance with respect to the estimated amount and an increase of one 14.4% in relation to the same period of 2022.
From January to June of this year, the General Directorate of Internal Taxes registered income for RD$393,132.0 million and the National Treasury for RD$39,531.6 million, exceeding the amounts collected in the same semester of 2022 by 17.2% and 57.0%, respectively, reported the official.
On the other hand, the collections of the General Directorate of Customs were 3.8% below what was collected last year. This behavior responds to the slowdown in world trade that has led to a decrease in the number of containers arriving in the country and a reduction in the value of freight.
Income
However, despite the pronounced drop in freight rates, by more than 30.0%, collections have decreased to a lesser extent, demonstrating the commitment of this direction to consolidate the income they contribute to the treasury, with the aim of maintaining balance of public finances.
Meanwhile, total expenses in the first semester of this year totaled RD$570,960.0 million, varying by 11.5% compared to 2022, of which RD$509,632.3 million represent current spending, which increased by 9.5% in interannual terms.
The head of public finance clarified that the increase registered in current spending during the aforementioned period is mainly due to transfers for the recapitalization of the Central Bank and the electricity sector.
Regarding the increase in remuneration, he indicated that the 10.5% variation is mainly explained by the increase in salaries in the Ministries of Defense and the Interior and Police, as a result of the gradual plan to reach the objective of the US minimum wage. $500 per month for your staff.
The cessation of inflationary pressures allowed a decrease in government subsidies to fuels and the agricultural sector in the first semester of 2023, in relation to the same period last year, going from RD$45,873.8 million to RD$34,182.8 million.
Similarly, there is an increase in transfers from the Supérate program, explained by Alimentate, of RD$1,952.5 million.
During the first semester of the year, the accumulated deficit was RD$31,514.9 million (0.5% of GDP) less than that registered in the first quarter (0.8% of GDP). Compared to the first semester of 2022, the deficit was reduced by RD$10,757.0 million, which represents a decrease of 0.27% of GDP.
