President submits RD$530 billion budget to Congress
The proposal is RD$14 billion more than announced
SANTO DOMINGO. The legislative proposal for the General National Budget of the State for 2013 was given by President Danilo Medina to the Senate. The overall total is said to be RD$530,846,000,000, which is RD$14 billion more to what had been announced in the Presidential Palace last week. This is because the money that is expected to be collected from the tax reform was made transparent.
Among the innovations is an increase in the budget of the Judicial Power for some RD$3.3 billion which makes their consignment for the year a total of RD$4.5 billion; the Central Electoral Board is assigned RD$3.5 billion; the Chamber of Accounts gets RD$466 million; the Constitutional Tribunal receives RD$550 million; the Public Defender (which has yet to be appointed by the Congress) will have RD$100 million and the Superior Electoral Tribunal will have almost RD$200 million.
The Budget assigns RD$5.7 billion to the National Congress; the President of the Republic will have RD$40 billion and the Ministry of Education will receive nearly RD$100 billion (RD$99.628).
The President's explanation
The letter from President Medina to the Congress explains that the 2013 budget is in line with the promises made in his platform, stressing the fact that 4% of GDP is for pre-university education, the assignment of resources which will incorporate some 450,000 persons into the subsidized regime of social security, the program for catastrophic illnesses and the incorporation of 45,000 new affiliates into the programs of social protection.
He cited in addition the support given to productive sectors, particularly tourism, farming and the micro, small and medium businesses which will increase the opportunities associated with higher levels of education, increase jobs, social cohesion and welfare of the population.
He said in the letter that the budget includes all the expectations of the Dominican state institutions in the assignment that have been given to each one, and that the budget has been thought through in accordance with the circumstances and the reality that the country is experiencing.
"The budgetary line items have been adjusted with attention to the Fiscal Reform, the effects of the Tax Amnesty and the progressive increase in income, with regard to the expectations of the coming year."
Payrolls frozen
The proposal specifies that the 2013 Budget was worked out based on rational criteria and spending austerity in order to reduce the deficit. As a general rule they have established a freeze on spending on goods and service to 2011 levels, except for Education and Health. They have also frozen the public payrolls to September 2012 with the exception of Education, Health, the Armed Forces and the National Police.
It is estimated that there will be a real growth rate of 3.0% in the GDP, and that inflation will average 5.0%. Likewise the budget assumes an exchange rate of RD$41.60 to the dollar and the international prices of oil to be US$106.20 a barrel (in the IMF basket)on average.
There is RD$76.1 billion for debt service
SD. As to the total income, it is estimated that it will be about RD$380.1 billion in regular income, and RD$4.3 billion in capital income, including donations.
At the same time, regarding expenditures, RD$356.7 billion will go to running expenses and RD$98.0 billion will go to capital expenditures and the remaining RD$76.1 billion will go to service the public debt, both internal and foreign and the reduction of the administrative debt and other financial applications.
The Budget also considers the payment of some RD$64.2 billion in interests, some 2.6% of GSP, including the interests of the Central Bank and the transfers to the electric sector, for an amount of US$1.05 billion or the equivalent of RD$43.7 billion pesos.
Among the innovations is an increase in the budget of the Judicial Power for some RD$3.3 billion which makes their consignment for the year a total of RD$4.5 billion; the Central Electoral Board is assigned RD$3.5 billion; the Chamber of Accounts gets RD$466 million; the Constitutional Tribunal receives RD$550 million; the Public Defender (which has yet to be appointed by the Congress) will have RD$100 million and the Superior Electoral Tribunal will have almost RD$200 million.
The Budget assigns RD$5.7 billion to the National Congress; the President of the Republic will have RD$40 billion and the Ministry of Education will receive nearly RD$100 billion (RD$99.628).
The President's explanation
The letter from President Medina to the Congress explains that the 2013 budget is in line with the promises made in his platform, stressing the fact that 4% of GDP is for pre-university education, the assignment of resources which will incorporate some 450,000 persons into the subsidized regime of social security, the program for catastrophic illnesses and the incorporation of 45,000 new affiliates into the programs of social protection.
He cited in addition the support given to productive sectors, particularly tourism, farming and the micro, small and medium businesses which will increase the opportunities associated with higher levels of education, increase jobs, social cohesion and welfare of the population.
He said in the letter that the budget includes all the expectations of the Dominican state institutions in the assignment that have been given to each one, and that the budget has been thought through in accordance with the circumstances and the reality that the country is experiencing.
"The budgetary line items have been adjusted with attention to the Fiscal Reform, the effects of the Tax Amnesty and the progressive increase in income, with regard to the expectations of the coming year."
Payrolls frozen
The proposal specifies that the 2013 Budget was worked out based on rational criteria and spending austerity in order to reduce the deficit. As a general rule they have established a freeze on spending on goods and service to 2011 levels, except for Education and Health. They have also frozen the public payrolls to September 2012 with the exception of Education, Health, the Armed Forces and the National Police.
It is estimated that there will be a real growth rate of 3.0% in the GDP, and that inflation will average 5.0%. Likewise the budget assumes an exchange rate of RD$41.60 to the dollar and the international prices of oil to be US$106.20 a barrel (in the IMF basket)on average.
There is RD$76.1 billion for debt service
SD. As to the total income, it is estimated that it will be about RD$380.1 billion in regular income, and RD$4.3 billion in capital income, including donations.
At the same time, regarding expenditures, RD$356.7 billion will go to running expenses and RD$98.0 billion will go to capital expenditures and the remaining RD$76.1 billion will go to service the public debt, both internal and foreign and the reduction of the administrative debt and other financial applications.
The Budget also considers the payment of some RD$64.2 billion in interests, some 2.6% of GSP, including the interests of the Central Bank and the transfers to the electric sector, for an amount of US$1.05 billion or the equivalent of RD$43.7 billion pesos.