President Luis Abinader Corona said his government closed 2020 with a deficit of 7.7% of gross domestic product (GDP), a figure lower than the budget of 9.4% and below the average of other countries in the region.
This means, the president said, that the deficit has been reduced due to proactive collection management, economic recovery and better use of public spending. In absolute terms, this represents a reduction of $ 77,000 million RD.
He said that the collections also closed the year with 3.75% above the estimate.
“We are dedicated to efficiency and transparency. For this reason, all non-priority expenses were controlled, such as allowances, advertising, entertainment expenses, travel expenses, events and festivities, as well as the purchase of vehicles and electrical appliances, among others “, he stated.
He assured that his Government Program includes a priority to achieve a reorganization of state institutions, to eliminate duplication of functions and to improve the efficiency of public spending.
He stated that “we have focused from day one on the goal of achieving an exemplary public administration. In other words, a government that serves the citizens, that carries out its activity with rationality and adherence to transparency in the management of public resources ”.
Finance
Abinader Corona, who was accompanied by Finance Minister José Manuel Vicente and Budget Director José Rijo at a press conference in the Las Cariátides Hall of the National Palace, said the country needs to be briefed on major progress in managing public finances.
He revealed that prioritizing and controlling public spending allowed him to reach US $ 978 billion in 2020, for a preliminary reduction from the budgeted amount of US $ 54 billion.
He assured that the spending cuts had no impact on the government’s priorities, which were clearly set out in the budget approved in early September.
The president said that “we have managed to increase health care items by $ 15,000 million RD, education by $ 10,000 million RD, drinking water by $ 3,200 million RD, housing by $ 4.6 billion RD, citizen security by $ 2.8 billion RD and social protection by RD $ 100,000 million RD ”.
programmer
He recalled that support programs for the vulnerable population had been expanded during the pandemic, and schools had been prepared for a virtual school year.
Abinader Corona reported that the health sector was also provided with the necessary resources to guarantee health care, an action that includes the investment needed to enroll two million people in the National Health Insurance (SeNaSa).
reservations
In the foreign exchange area, it has been possible to maintain exchange rate stability over the past four months, allowing the Central Bank to increase international reserves from $ 6,700 million to $ 10.6 billion, which has guaranteed macroeconomic stability, he said.
“What we have achieved so far has allowed us to grow the country’s economy, without neglecting the needs of vulnerable people, which is an unprecedented advance in the process of fiscal consolidation of the government.”
Explain the savings and expenses
Discipline
Jochi Vicente, Minister of Finance, stressed that “all ministries have suffered cuts in spending compared to what was budgeted and this decrease in the deficit was the result of that budgetary discipline and increased revenues.”
Edes savings
President Abinader explained that together the three electricity distribution companies (EDES) have 355 fewer employees and have reduced their operating costs. They eliminated pay. Savings of US $ 100 million were achieved in the financial deficit and the four boards were merged into one.