The Executive Branch submitted a piece for study and approval that raises an increase in tax revenue in the order of RD $ 63,641.8 million compared to what was projected in the Budget Reformulated in July.
In a press release, the Budget Directorate now estimates that tax revenues at the end of 2021 will amount to RD $ 830,007.2 million, equivalent to 15.6% of the projected Gross Domestic Product (GDP), taking into account the dynamics that have been shown so far, the economic prospects for the remainder of the year and the continuation of "efforts to combat tax avoidance, evasion and fraud".
Regarding the expense, it is a net increase of RD $ 13,263 million, with which the expenditures will amount to RD $ 989,853.2 million or 18.6% of the estimated GDP for the year.
The entity adds that the increase in spending responds to the growing demand for resources associated with supporting the revitalization and strengthening of the productive fabric, the social programs necessary to support the most vulnerable population, the fight against the pandemic and counteract the rise in mass consumer products.
On November 15, the Executive Power sent to the National Congress a project that modifies laws 237-20 and 166-21 of the 2021 General Budget of the State to introduce changes in income projections and in spending programming, leaving the needs unchanged. financing for this year.
The decision to present a new budgetary modification is based on the dynamics of the fiscal accounts during the first 10 months of 2021, in a macroeconomic perspective that points to a real expansion of the economy around 10.7% for this year and in the commitment of the current administration to make the management of public resources transparent.
The piece highlights that the total increase in spending for the remainder of the year has been mitigated by a strong prioritization process and increased efficiency in the quality of public spending, an effort that has been achieved produce savings of RD $ 22,075 million in the contracting of advertising, printing, travel, rentals, insurance, allowances, allowances and representation expenses and in the purchase of materials and supplies.
Likewise, it indicates that, in addition to the increase in spending, there was a recomposition between institutions worth RD $ 52,058.6 million, allowing the channeling of resources to priority areas.
When considering the future evolution of income and the expansion of spending, the project contemplates a decrease in the fiscal deficit of RD $ 50,378.8 million compared to previously estimated, placing the gap between income and expenses at RD $ 159,846 million at the end of the year, returning to 3% of GDP forecast at the beginning of 2021.
The submitted piece also raises an increase in financial applications for RD $ 50,378.8 million, in line with the evolution of the fiscal result. This increase responds to the objective of creating the space for a potential liability management operation, subject to the credit conditions of the markets.
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