Former governor Central Bank Guillermo Caram warns the Abinader administration is sacrificing capital expenditures for current spending. Caram says the complementary budget sent by the Abinader administration to Congress for approval is “a manifestation of fiscal arrhythmia.” He said that while the government wants to give the impression it is exercising austerity, it submits a bill that increases current spending instead of trying to reorient the spending. He said the complementary budget increases spending by 3.3%, or RD$32.42 billion more.
He criticizes the current spending sacrifices funds available for capital expenditures. He criticizes that the money is being made available for bureaucracy, subsidies, purchase of goods and services and public debt. He says as of 25 June 2021, the average daily current expenditures exceed the daily budget execution for the whole year by 53%. In contrast, capital expenditures in infrastructure, machinery and loans essential to increase production is contracting and is barely 6% of the total government spending.
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Hoy
6 July 2021