Economists of the Regional Center for Sustainable Economic Strategies (CREES) alert that the 2018 National Budget Bill maintains the pattern, begun in 2001, of the state taking on debt to maintain high levels of administrative spending.
CREES recommends that instead the government implement budgetary restrictions for a more prudent use of taxpayer money. CREES also proposes increasing the tax collection capacity of the state by simplifying the tax system and reducing taxation rates. It makes the point that given the size of the informal economy in the country, the impact of such a measure would be considerable.
CREES says that since 2008, the government has been budgeting to spend more than it collects in taxes. The deficit is compensated by increasing government debt.
The Medina administration 2018 Budget Bill is for RD$814.8 billion, of which RD$687.2 billion have been allotted to government expenditures, or 17% of the Gross National Product. Of these RD$583.6 billion are allotted for current spending and RD$106.3 for capital expenditures.
CREES criticizes that the 2018 budget again is overestimating tax revenues and underestimating public spending.
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Digepres
16 October 2017
