President Luis Abinader’s first term saw the highest government spending on salaries as a percentage of the Gross Domestic Product (GDP), Diario Libre reported. This is despite making the smallest increase to the public payroll in the past four administrations.
Between August 2020 and June 2024, the number of public employees rose by 11.41%, from 515,314 to 618,687. While this growth is lower compared to the 39.83% increase during Danilo Medina’s first term, the cost of the payroll as a proportion of the GDP has significantly increased.
In 2020, the government allocated 4.2% of the GDP to salaries, which rose to 6.2% in 2024. The average monthly salary for public employees also jumped 34% during this period.
The Ministry of Public Administration attributed the payroll growth to an increase in the number of teachers, police officers, and healthcare workers. However, the government has not provided a detailed breakdown of how much of the increased spending is directly attributable to these sectors.
The reality is that a larger proportion of the government’s budget is now allocated to salaries, potentially affecting spending on other public services and infrastructure construction. Most major projects are now undertaken with borrowing given the large amount of government revenues are spent on salaries and paying for the bloated public debt.
Diario Libre reports the increase in government wages is a long-term trend. The public payroll has nearly tripled since 2003, highlighting a consistent trend of government expansion across multiple administrations meet political patronage commitments.
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Diario Libre
El Caribe
25 September 2024