Following a meeting with President Danilo Medina, Budget Director Luis Reyes has announced that the President has agreed the 2013 budget with his ministers for RD$443.37 billion (RD$443,374 million), without the debt. If the debt is added in, the budget rises to RD$516.79 billion (RD$516,799 million). The budget is due to be presented to Congress on 11 December.
The largest chapter of the budget is the allocation for education, which is for 4% of the Gross Domestic Product (GDP) at RD$99.6 billion. A law passed in 1997 made it obligatory for the government to set aside 4% of GDP for education, but the Fernandez and Mejia governments did not comply with the law.
Reyes said that they are also seeking to reduce the deficit next year to 2.7% of GDP, around RD$77 billion. For 2012, overspending by the Fernandez administration is expected to yield a deficit that exceeds RD$200 billion. The 2012 National Budget had initially authorized a deficit of RD$22 billion. Mid-year taxation increases were passed, but notwithstanding, government overspending created the highest fiscal deficit ever.
Presidency spokesman Roberto Rodriguez Marchena said that the budget included RD$1.2 billion for the Autonomous University of Santo Domingo (UASD), more than they received this year.
He said that the government was sincere in its wish to increase funding for education and President Medina wanted the majority of the budget to be invested in people, hence the priorities would be education, government social programs, law, order and justice and economic sectors to boost job creation, including agriculture and tourism.
He said that the budget is also being used to fulfill the President’s campaign promises with RD$7.26 billion invested in social programs, access to health and the Solidarity program.
The justice system will have an increased budget of RD$450 million and another RD$835 million will be invested in other areas to improve security.
Priority will be given to the Public Works that will have the greatest social impact.
Before presenting the budget, the Medina administration pushed a fiscal package through the PLD-majority Congress to increase taxation by around RD$50 billion.