The Chamber of Accounts, the government auditing office, indicates in its report to the National Congress regarding the execution of the 2017 National Budget, that the Medina administration has showed weakness regarding its accountability and compliance with the financial parameters established in the budget law and above all in regards to taking on debt.
Diario Libre reports that the Chamber of Accounts acknowledges efforts of the Tax Agency have resulted in an increase in tax receipts without imposing new taxes, but at the same time stresses that indebtedness last year was above the limits defined in Public Credit Law 6-06. Specifically, at the close of the fiscal year the amount of debt borrowed was RD$176.4 which is equivalent to 4.96% of GDP. The Chamber of Accounts says that government rules establish a limit of 3% of GDP for government borrowing.
The Chamber of Accounts calls for the convening of the Council on Public Debt in order for it to recommend to the Executive Branch, “the adoption of special measures to limit all new increases of the public debt.” This will be in accordance paragraph (A) of article 11 in Public Credit Law 6-06.
The report to the National Congress also notes this situation regarding the issuing of treasury notes that surpass the level that the National Congress had authorized in 2017 within the framework of the National Budget Law. The Treasury has obtained RD$47.6 billion in funding from borrowing using different instruments, when the Ministry of Hacienda had set a limit of RD$28 billion for the issuing of treasury bonds or contracting of other measures of financing. This means that in 2017 the Treasury issued 70% more than it was legally authorized to do.
The Chamber of Accounts also noted that there were inconsistencies in the numbers in the financial statements by the leaders of the financial administration and issued a call to continue the efforts to guarantee the proper financial reconciliation of the different accounts in the budget.
The Chamber of Accounts also called on Customs Agency and Tax Agency to register all of their transactions in the Financial Management Information System.
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Diario Libre
17 May 2018
