Fiscal deficit of 2013, 11.3% greater than current budget
Government accounting estimates difference of RD$7.1 billion
Edwin Ruiz
SD. During 2013, the fiscal deficit was RD$70.0 billion (equal to 2.77% of GDP) which means that it was 11.3% greater than the current item of RD$62.9 billion, according to a report from the General Directorate of Government Accounting.
Also, last February, the Minister of Hacienda, Simon Lizardo, told the press that in 2013 the fiscal deficit was some RD$70.0 billion, equal to 2.77% of GDP. At that time, he accompanied this information with the clarification that this deficit was below the goal that was forecast.
The fiscal balance estimated by the Accounting Office appears in its report "State of Collections and Investment of the Income" which covers 2013, and which it prepares each year so that is serves as the basis for the Chamber of Accounts to prepare the yearly report which it presents to the Congress.
The amount o RD$70.0 billion to which the minister referred corresponds to the original budget, before it was modified. But in its report the Accounting Office stresses that his result was modified by RD$7.2 billion to remain at RD$62.9 billion. On 27 November 2013, the Congress approved Law 158-13 which modified that year's budget.
The Accounting Office says that the financial results for 2013 "reveal a deficit of RD$70.0 billion, which represents 111.3% with respect to the estimate in force for 2013, and which at the same time represents 2.77% of GDP."
They explain that the financial results bring together the different concepts of income and expenditures that the Central Government generates or incurs during the exercise of a determined fiscal exercise.
The deficit is the result of the balance between the current income and the capital received for an amount of RD$378.999 billion and equal to 14.9% of GDP, and the execution of the current expenditures and of capital, which reached RD$449.0 billion (equal to 17.7% of GDP), they explained.
But in comparison to the financial results of 2012, what happened last year could be called a great improvement.
For that year, the Directorate General of Government Accounting estimated the fiscal deficit at RD$125.1 billion, equal to 5.25% of GDP. According to the Accounting Office, during this year, the increase of the deficit in relation to the amount in force was RD$126.66 billion or 11.26%.
The entity explains that the information contained in the State of Collection and Investment of the Income shows those registered and submitted by the institutions of the public sector in correspondence which provided the reports of accounts and their execution.
Nevertheless, they observe that among these reports are not included "those operations and expenditures carried out by some institutions and agencies of the public sector directly that were not the object of estimates in the General State Budget."
Nevertheless, as far as is known, that of the Accounting Office is the only yearly report on the execution of the 2013 Budget which has been published: a very weak manner to provide an accounting to Dominican society.
Budgetary transparency
The General Directorate of the Budget has not published a yearly report on budgetary execution corresponding to 2013. And in fact, this omission can be tracked back three years. When someone goes into the webpage on the Internet (http://portal.digipres.com/), he cannot find the following: A yearly and detailed report on the budgetary executions for 2013. And only an analysis of the execution up until September 2013 can be seen. In the meantime the last complete report is for 2010.
Also, last February, the Minister of Hacienda, Simon Lizardo, told the press that in 2013 the fiscal deficit was some RD$70.0 billion, equal to 2.77% of GDP. At that time, he accompanied this information with the clarification that this deficit was below the goal that was forecast.
The fiscal balance estimated by the Accounting Office appears in its report "State of Collections and Investment of the Income" which covers 2013, and which it prepares each year so that is serves as the basis for the Chamber of Accounts to prepare the yearly report which it presents to the Congress.
The amount o RD$70.0 billion to which the minister referred corresponds to the original budget, before it was modified. But in its report the Accounting Office stresses that his result was modified by RD$7.2 billion to remain at RD$62.9 billion. On 27 November 2013, the Congress approved Law 158-13 which modified that year's budget.
The Accounting Office says that the financial results for 2013 "reveal a deficit of RD$70.0 billion, which represents 111.3% with respect to the estimate in force for 2013, and which at the same time represents 2.77% of GDP."
They explain that the financial results bring together the different concepts of income and expenditures that the Central Government generates or incurs during the exercise of a determined fiscal exercise.
The deficit is the result of the balance between the current income and the capital received for an amount of RD$378.999 billion and equal to 14.9% of GDP, and the execution of the current expenditures and of capital, which reached RD$449.0 billion (equal to 17.7% of GDP), they explained.
But in comparison to the financial results of 2012, what happened last year could be called a great improvement.
For that year, the Directorate General of Government Accounting estimated the fiscal deficit at RD$125.1 billion, equal to 5.25% of GDP. According to the Accounting Office, during this year, the increase of the deficit in relation to the amount in force was RD$126.66 billion or 11.26%.
The entity explains that the information contained in the State of Collection and Investment of the Income shows those registered and submitted by the institutions of the public sector in correspondence which provided the reports of accounts and their execution.
Nevertheless, they observe that among these reports are not included "those operations and expenditures carried out by some institutions and agencies of the public sector directly that were not the object of estimates in the General State Budget."
Nevertheless, as far as is known, that of the Accounting Office is the only yearly report on the execution of the 2013 Budget which has been published: a very weak manner to provide an accounting to Dominican society.
Budgetary transparency
The General Directorate of the Budget has not published a yearly report on budgetary execution corresponding to 2013. And in fact, this omission can be tracked back three years. When someone goes into the webpage on the Internet (http://portal.digipres.com/), he cannot find the following: A yearly and detailed report on the budgetary executions for 2013. And only an analysis of the execution up until September 2013 can be seen. In the meantime the last complete report is for 2010.
Edwin Ruiz
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