2015News

2014 fiscal deficit close to RD$70 billion

Officially, 2014 closed with a fiscal deficit of RD$70.484 billion, or 90.7% of the amount estimated at the beginning of the year (RD$77.70 9 billion) and 109.7% of the amount resulting from the modification of the budget approved by the national Congress on 9 December 2014. According to the report on the State of Collections and Investment of the Income for fiscal year 2014, this latest figure on the deficit is RD$64.2 billion, which points toward the government managing to register a much lower goal on the fiscal deficit than what was really achieved. In his cover letter for this legislative proposal, President Danilo Medina says that they are including changes in the credit operations, “without this implying an increase in the net total financing approved in the current budget, because the new operations proposed substitutes financing set out in the 2014 Budget.”

Nevertheless, although at the close of the year, the budget net financing was lower than estimated in the formulation of the budget in early 2014, something different occurred in relation to the gross financing (which does not discount the paid debt). The total of the financial sources totaled RD$194.0 billion, which represents 102.5% of the amount originally approved by the Congress (exceeding by RD$4.7 4 billion). In relation to the current amount after the budgetary modification of November 2014, what was carried out represents 110.3%, reflecting an excess of RD$18.1 billion. The Government supported itself with more debt within a context in which the goal for fiscal income was reached.

http://www.diariolibre.com/economia/2015/03/30/i1076811_dficit-fiscal-del-2014-fue-rd70-484-millones.html