Borrowing to keep government spending high

Minister of Hacienda Simon Lizardo has announced that the state will be taking out a global loan of RD$189 billion to balance the 2.3% GDP deficit in the 2016 National Budget. Of this sum, RD$73 billion will go on expenditure included in the 2016 budget and the remainder on covering past debts. He said this is below the deficit of 6.6% of GDP the country had in 2012. Lizardo says that the country needs to control “wasteful spending”. He said the government income is only 14.1% of GDP and expenses are 17.5%. Over the years, the PLD administrations have preferred to take on spending, rather than cut “wasteful spending.”