The economist Henry Hebrard pointed out that despite the increase in the deficit, there will be no need to increase the financing of the 2021 Budget, projected at RD$291,528.5 million, adding the initial deficit of RD$145,065.0 million with the financial applications that were initially contemplated for RD$146,463.5 million.
“But quite the opposite: thanks to the cash surplus that occurred in the last four months of 2020, around RD$70,000 million, the new financing need is rather reduced to RD$253,727.7 million, which will help reduce the pressure on the level of indebtedness at the end of 2021 ”, he explained.
He indicated that the consolidated public debt continues to decline from 74.8%, in March of this year to 73.1% in April and to 71.4% in May, equal to 59,410.2 million last May, due to the economic recovery. As of 2020, it was 46,833.2 million.
He recommended transforming the current economic model into a new ecosystem, where economic growth is more sustainable and more inclusive.
He foresees that the fiscal deficit could increase by RD$193.8 billion, and would go from RD$145.065 million to RD$338.865 million, due to the increase in government spending to stop the spread of covid-19 and other social demands.
“Current income, excluding the sale of assets that will no longer be carried out, would now close at RD$766,365 million, that is, RD$101,140 million above the budget, helping to offset a significant proportion of the overdraft on the expense side,” he explains in the Hebrard & Hebrard Consulting report from last May.
Regarding expenses, he cited the increase of RD$113,700 million in primary expenses, due to the fight against covid-19 that forced the Health budget to increase by RD$40,000 million, of which RD$30,000 million were to buy vaccines and RD$20,000 million for social transfers.
“Likewise, the items corresponding to subsidies had to be increased for about RD$16,000 million, of which RD$8,700 million for the electricity sector and RD$6,000 million to cover the unforeseen costs of the price freeze (in both cases due to the rise in prices). oil prices above US$70 / barrel, while only an average price of just US$45.50 / barrel had been projected, “he indicated.
In the same way, he said, what corresponded to the sale of assets that had been included in the 2021 Budget was excluded from the expectations of capital income, which represents an aggravation of the deficit around RD$80,100 million ”.
Source:
Hoy
