Santo Domingo.-The Government estimates it will have between RD$80,000 million and RD$90,000 million available to address the economic effects derived from the international crisis, through a combination of new fiscal measures and the reduction of public spending.
This was reported by the Minister of Finance and Economy, Magín Díaz, upon presenting the plan for “Pro-economic growth measures and mitigation of the international crisis,” an initiative with which the authorities seek to strengthen the State’s capacity to respond to the pressures generated by the war conflict affecting international markets.
As the official explained, the tax reform proposal submitted to the National Congress would allow for the collection of an additional RD$40 billion to RD$50 billion, equivalent to between 0.5% and 0.6% of the Gross Domestic Product (GDP).
These resources would be added to another RD$40 billion that the Government projects to obtain through containment and reallocation measures of public spending announced last April 30th after a Council of Ministers meeting.
We recommend reading: Government delivers new police station in Mencía, Pedernales
More Read
“It is additional, because some are expenditure-side measures and these are revenue-side measures. We are talking about RD$80 billion to RD$90 billion to address the crisis,” Díaz stated when answering questions from the press.
Among the savings measures adopted by the Government are the reduction of operating expenses, restrictions on the purchase of vehicles —except for priority areas—, a decrease in minor repairs and maintenance, rationalization of hiring and services, reduction of expenses on events, per diems, tickets, fuel, and advertising, as well as lower transfers to public entities with the capacity to generate their own income.
Díaz indicated that, as a result of these measures, the Executive Branch has already managed to redirect around RD$12 billion toward areas considered priority.
More Read
“What was announced were measures for public spending containment and the reallocation of non-priority expenses to direct them toward subsidies and other more urgent needs,” he explained.
The tax proposal also contemplates a US$10 increase in airfares, increases in taxes applied to checks and electronic transfers, electronic cigarettes, vapes, casinos, and gambling.
Likewise, it includes a tax amnesty to regularize pending obligations and the elimination of advance payments for micro-enterprises, with the aim of reducing the tax burden on lower-income sectors.
