Day: June 13, 2024

Analysis of budget execution

The analysis of budget execution must always be objective and based on the appropriate use of the data collection tools. Since the beginning of this administration, the General Directorate of Budget (DIGEPRES) has established transparency and social oversight as one of its strategic priorities. This has placed the Dominican Republic first in the Americas and fourth out of 125 countries evaluated in terms of citizen participation in the budget, according to the 2023 Open Budget Survey (OBS) conducted by the International Budget Partnership (IBP). The primary source for budget analysis is DIGEPRES' weekly publication on its website, from which, through the correct use of a pivot table, precise information can be extracted according to the different budget classifications. Thus, to say that: “In April, the Government allocated 1,037 million pesos in “per diems and representation expenses”, averaging almost 35 million pesos daily”, is a misuse of the information provided and of the concept of government, since in that data it is not differentiated between the Executive Branch and the other constitutional bodies of the State, including the Central Electoral Board. Excluding the Central Electoral Board's (JCE) expenditure on "per diems and representation expenses" in the context of presidential, congressional, and municipal elections, which totaled RD$973.6 million from January to April, the Executive Branch's spending on these items amounts to RD$152.8 million in 2024, compared to RD$334.1 million in 2019 and RD$367.1 million in 2020. It is worth noting that during 2019 and 2020, the Ministry of Foreign Affairs alone spent RD$320.3 million and RD$350.9 million, respectively—significantly more than all other ministries combined in 2024. Specifically, in April 2020, the Executive Branch spent RD$93.8 million. millions, in “per diems and representation expenses”, while the amount spent in 2024 reached only RD$38.6 million. Similarly, when it says: “In April 2024, the Government reported having allocated 20,929 million pesos in remuneration, an increase of 2,095 million pesos compared to the monthly average of 2023 (excluding the months of double salary payment, of course)”, the data is again used inaccurately and the classification is incorrect. In sub-account 2.1.1 Remuneration, it is true that the exact increase in the Executive Branch is 2,024 million pesos, but this is because a clear policy has been followed to comply with the 4.1% of GDP allocated to education and improving the salaries of police, defense, and drug and controlled substance prevention personnel at the national level, representing 80.1% of the increase. The "onion salary" no longer exists. The increase in remuneration for the other institutions averaged RD1.1%, which, considering natural inflation between periods, is not significant. Finally, to make fair comparisons between years, it is necessary to deflate the amounts to isolate the effect of price increases between 2024 and previous years such as 2019. Furthermore, it is essential to understand the changes made to budget classifications, in this case, the expenditure category, and administrative decisions that increase transparency in expenditure records, a factor evidenced by the elimination of the use of "scrapbook" accounts. Without considering these elements, any comparison can be misleading. Never before have the Government and the General Directorate of Budget implemented measures to guarantee citizens' right to know and to raise levels of transparency, oversight, and social participation. For example, the information provided by the institution and the tools employed to bring the General State Budget closer to the public than ever before are readily available.