Finance Minister Jochi Vicente reported that capital expenditure between January and June of this year was RD$61,125.9 million, equivalent to 0.9% of the gross domestic product (GDP), and that it represents a year-on-year increase of 31%, equivalent to an additional RD$14,489.7 million.
SANTO DOMINGO- The Dominican government has invested around 5 billion pesos in housing solutions through the various programs implemented by the current administration, according to a report released yesterday by the Ministry of Finance.
According to data provided in a press release, during the period January-June, RD$2,731.5 million was allocated to the Mi Vivienda trust for the construction of 1,818 housing units; RD$1,145.4 million for the reconstruction of houses in San Luis and RD$803.5 million for the improvement of 100,000 homes in Santo Domingo.
Finance Minister Jochi Vicente reported that capital expenditure between January and June of this year was RD$61,125.9 million, equivalent to 0.9% of the gross domestic product (GDP), and that it represents a year-on-year increase of 31%, equivalent to an additional RD$14,489.7 million.
Vicente explained that this increase is due to RD$7,583.5 million in works and constructions in progress and an increase of RD$7,205.7 million in capital transfers (49.7%), highlighting those made to the Trust for the Development of the Mass Transit System of the Dominican Republic (Fitram), which is carrying out the construction of the monorail and the cable car of Santiago.
Within the spending carried out on investment projects during the first semester, in the area of public transport, the construction of Line 2C of the Santo Domingo Metro (RD$4,698.9 million), Los Alcarrizos-Luperón section and the second line of the Santo Domingo Cable Car (RD$1,389.1 million) stand out.
Additionally, RD$713.5 million was allocated for the construction of the Dajabón Border Perimeter Fence.
In terms of income, the official noted that collections, including donations and direct collections by institutions, amounted to RD$539,445.1 million during the first half of the year, representing 102.9% of the estimated amount and an increase of 14.4% compared to the same period in 2022.
From January to June of this year, the General Directorate of Internal Taxes recorded revenues of RD$393,132.0 million and the National Treasury of RD$39,531.6 million, exceeding the amounts collected in the same semester of 2022 by 17.2% and 57.0%, respectively, the official reported.
In contrast, revenues collected by the General Directorate of Customs were 3.8% lower than last year. This decline reflects the slowdown in global trade, which has led to a decrease in the number of containers arriving in the country and a reduction in freight costs.
However, despite the sharp drop in freight rates, by more than 30.0%, revenues have decreased by a smaller proportion, demonstrating the commitment of that management to consolidate the income they contribute to the treasury, with the aim of maintaining the balance of public finances.
Fiscal deficit
During the first half of the year, the accumulated deficit was RD$31,514.9 million (0.5% of GDP), lower than that recorded in the first quarter (0.8% of GDP), according to the Ministry of Finance.
In a press release, the state institution says that, compared to the first half of 2022, the deficit was reduced by RD$10,757.0 million, representing a decrease of 0.27% of GDP.
Meanwhile, total expenses in the first half of this year amounted to RD$570,960.0 million, varying by 11.5% compared to 2022, of which RD$509,632.3 million represent current expenses, which increased by 9.5% year-on-year.
The head of public finances clarified that the increase recorded in current spending during the aforementioned period is mainly due to transfers for the recapitalization of the Central Bank and the electricity sector.
Police pay raise
Regarding the increase in remuneration, he indicated that the 10.5% variation is mostly explained by the salary increase in the Ministries of Defense and the Interior and Police, as a result of the gradual plan to reach the goal of a minimum salary of US$500 per month for their personnel.
Reduction of more than 9 billion
The cessation of inflationary pressures allowed a decrease in government subsidies to fuels and the agricultural sector inthe firsthalf of 2023, compared to the same period last year, going from RD$45,873.8 million to RD$34,182.8 million.
Similarly, there is an increase in transfers from the Supérate program, explained by Aliméntate, of RD$1,952.5 million.
