Inflation yields little to the cost of subsidies

Since the beginning of the government, President Luis Abinader and the authorities have focused on social protection measures in order to curb the impact of external vulnerabilities, however, the The high cost of aid to counter inflation is heavier for the State than the impact on people’s pockets.

Between these Social helps Support is included for poultry farmers, bakers, the fuel and energy sector, fertilizers, food, through the National Institute for Price Stabilization (Inespre); zero rate to 67 imported products, to rice prices, soft financing via Banco Agrícola, among others that include the programs To eat: from the field to the grocery store, and Siembra RD.

Added to these are the social assistance programs based on money transfers conditioned and unconditionedbut despite these measures that have earned international recognition to the current government management, the forms of operation in the market are not reflected in the same magnitude in the population as the implications of the fiscal sacrifice.

Knowingly, business sectors have requested the action of Pro Consumidor, Procompetencia, Prousuario, Protecom and other regulatory entities of the free market, but with fair rules.

It is remembered that Despite the 10% subsidy on imports of soybeans, wheat and corn and fertilizers, as well as the zero rate on 67 basic basket products, several reports indicated that these had little result in terms of prices to the final consumer.

The cost
In the first half of 2022, the Government had allocated RD$34,000 million in social protection measures through subsidies intended to counteract inflation. These were allocated to the electricity sector, fuels, drivers, chicken and flour producers, the supérate program, food marketed by Inespre and imports of fertilizers.

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Between January March 2022 and the same period of 2023, there was an increase in transfers for subsidies of more than RD$5,493.7 millionaccording to a twitter from the Ministry of Finance, when going from an amount of RD$15,228.5 million in the first quarter of last year versus the first quarter of this year with the designation of RD$20,722.2 million for this concept.

There are also support measures from INABIE and the Food and Agriculture Organization (FAO) for 40 school gardens in the city of Santiago

CPI year-on-year fell to 5.90%
In March, the Central Bank (BCRD) announced that the CPI fell to 5.90% year-on-year and the products that fell and that are highly weighted in the family basket were fresh chicken (-0.90%), green plantains (-2.88%) and others.

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