Economist Gustavo Volmar, writing in today’s Diario Libre, Thursday, 2 May points out that 70% of the reduction in government spending was in capital expenditure, with only 30% in current spending. El Caribe reports that spending during the first quarter of the year was concentrated on payroll, debt service, payment of wages, subsidies and interest payments. The PLD administrations are noted for wasteful spending, as reflected by the country’s top ranking in this category in the World Economic Forum Competitiveness Report.
Volmar writes that the first budget report published by the Medina administration indicates that the government only spent RD$88.6 billion of RD$103.6 billion allocated for the first quarter of the year. The fiscal deficit for the month was RD$2.5 billion, instead of the estimated RD$16.4 billion.
Volmar warns that government spending on wages and purchases is up. From January to March, the government payroll increased from RD$6.96 billion in January to RD$7.12 billion in February and RD$8.04 billion in March. Procurement was up from RD$1.69 billion in January to RD$2.29 billion in February and RD$3.6 billion in March. Capital spending was up from RD$1.04 billion in January to RD$3.47 billion in February and RD$6.05 billion in March.
He also warns that the increases in spending occurred at a time when government collections during the first three months of the year were below projections.
The Medina administration has resumed the publication of periodic reports that had been discontinued under the Fernandez government.
www.elcaribe.com.do/2013/05/02/nomina-subsidios-deuda-tomaron-80-del-presupuesto
www.diariolibre.com/gyv/2013/05/02/i381631_informe-presupuesto.html
www.portaldelciudadano.gov.do