On his Twitter account, the Minister of Finance, Hochi Vicente, published that today the Executive Power sent to the National Congress the bill that modifies Law No. 345-21 of the General State Budget for 2022 and ensures that The project does not contemplate increasing the level of financing (debt) previously approved.
The minister says that the project contemplates the upward revision of fiscal revenues by RD$66,606.5 million due to the resilience that the Dominican economy continues to demonstrate and the administrative efficiencies carried out by the collection offices.
Likewise, the growing pressures on the expenditure side that were not foreseen during the initial budgeting process are incorporated, mainly associated with the persistent and disproportionate increase in the prices of raw materials and oil.
It affirms that the expansion of the fiscal gap will be fully covered by available resources from previous fiscal years and the reduction in financial applications, largely achieved by the liability management operation carried out in February 2022.
Close to 68% of the new spending requirements are associated with covering subsidies for fuel prices, basic basket food and productive inputs; as well as the increase in transfers to electricity and the expansion of social programs
It indicates that the project contains a net increase in expenditures of RD$114,001.6 million, prioritizing appropriations to accommodate the growing demand for resources to face the adverse effects of inflation on the working class and vulnerable households.
Meanwhile, the additional resources needed to counteract the effects of inflation amount to RD$92,368 million, including additional transfers to cover the deficit of the EDEs that has been produced by the sharp increase in the price of oil derivatives.
The public debt interest expense projection was reduced by RD$ 5,623.6 million as a result of the new exchange rate projection and the effects of the liability management operation carried out in February.
The project contemplates an increase of RD$47,395.2 million in the fiscal deficit and it is estimated that at the end of the year it will close at -3.6% of GDP. However, this deficit will not translate into additional indebtedness to that already approved by the National Congress.