Day: October 6, 2021

The government submits the 2022 General State Budget Bill to the National Congress for approval.

Twelve of the 22 ministries will see reductions in their budget allocations to create the necessary budgetary space to increase funding for priority programs in Santo Domingo. The Executive Branch today submitted to the National Congress, for its review and approval, the draft General State Budget Law for 2022, which contemplates total expenditures for the Central Government amounting to RD$1,155,565.3 million, of which total expenditures are projected at RD$1,046,280.7 million and financial applications at RD$109,284.6 million. The legislative bill was delivered by the Minister of Finance, Jochi Vicente, and the Director General of the Budget, José Rijo Presbot, to the President of the Chamber of Deputies, Alfredo Pacheco Osoria, in accordance with Article 233 of the Constitution of the Republic and Article 34 of the Organic Budget Law for the Public Sector No. 423-06. The bill includes a significant effort to prioritize public funds to support the recovery and relaunch of the national productive sector. Tax revenues for the Central Government in 2022 are projected at RD$1,871,485.9 million, equivalent to 14.9% of the estimated GDP for the year. During the ceremony, Vicente explained that this budget projects a deficit for the Central Government of 3.0% of GDP, in line with the consolidation of fiscal accounts undertaken by the current administration to maintain a sustainable debt trajectory. It is noteworthy that 12 of the 22 ministries will see reductions in their budget allocations compared to 2021. This will create the necessary budgetary space to increase funding for other programs defined as priorities, following the strategy of targeted spending to support the economy's recovery without generating additional financing needs. The Minister of Finance also stated that there are other urgent priorities for the country in the areas of health, social protection, citizen security, and infrastructure projects. These are part of the fiscal reorganization proposal that the Government will present in October for public review and discussion, before its subsequent submission to Congress. The Director General of the Budget explained that the expenditure programming for the 2022 fiscal year has the fundamental purpose of ensuring the country's inclusive and sustainable development, prioritizing the main needs of its citizens. Salary Increase for Police and Military Personnel: The bill includes increases in the budget allocations of the Ministries of the Interior and Police and of Defense, reaching amounts of RD$1,509,182.2 million and RD$1,821.3 million, respectively. This is primarily due to the salary increases for police and military personnel and to provide resources to strengthen the Citizen Security Plan by modernizing the infrastructure, equipment, and technology of national defense institutions. Social Protection and Security: The bill allocates RD$1,500,939.6 million for the universalization of social security through the National Health Insurance (SENASA). This initiative aims to increase enrollment to over 5.8 million Dominicans in the subsidized family health insurance program and 1.2 million in the contributory program. Similarly, it proposes the continuation of the "Supérate" program, which doubles the per capita funding provided by assistance programs prior to the COVID-19 pandemic. Within this framework, the "Aliméntate" program, which replaces "Comer es Primero," has a planned allocation of RD$1,446,730 million to provide conditional cash transfers to eligible households. Investment Projects: The planned capital expenditure includes the execution of high-social-return projects such as the construction of aqueducts and wastewater treatment plants, expansion of electrical grids, construction and expansion of educational facilities, repair and remodeling of hospitals and childcare centers, and the plan for repairing and constructing new homes to reduce the housing deficit. The largest proportion of investment project spending will be concentrated on improving the intra- and interprovincial road network to facilitate the transportation of people and goods, which is essential to catalyzing private investment. RD$16 billion will be allocated for the development program of the physical infrastructure of streets and avenues and another RD$5,600 million for the increase of transport capacity and the construction of sections in the lines of the Santo Domingo Metro.