The Director of the Directorate-General of Public Accounting (Digecog), Félix Santana García, stated that at the level of indebtedness, which is already close to 70% in relation to gross domestic product (GDP), “nothing can be done if the money diverted by the prevailing corruption of the previous government is not recovered and if the pandemic has its negative effects. does not diminish. “
Santana alluded to the data in the report of the Economic Commission for Latin America and the Caribbean (ECLAC) on the balance of the economies of Latin America and the Caribbean 2020 after the impact of the coronavirus (COVID-19) in the countries that make up the area.
“Although the the economic and financial picture of the Dominican Republic presented by ECLAC is not entirely promising for 2021, the situation will improve as the pandemic abates through the massive application of vaccines and the money diverted from the previous government’s corruption is recovered, ”he said, according to a statement.
The above study indicates that in the Dominican Republic, GDP reported a 5.5% decline and at the end of 2020 the central government budget deficit is estimated at 9.9% of GDP, compared to 2.2% in 2019.
The report indicates that the current account deficit will close at 3% of GDP, compared to 1.3% in 2019 due to the contraction in income due to the decline in tourism. Year-on-year inflation will close at a limit of 5% in the target range and the unemployment rate has been reduced by 8.8%.
Santana complained that tax collection had decreased by 17.1%, with a 19.1% reduction in taxes on goods and services; while social expenditure in real terms showed the most significant increase year on year, namely 192.6%.
He explained that to deal with the crisis, the government has received loans from several international organizations such as the World Bank ($ 150 million), the Inter-American Development Bank ($ 486 million), the International Monetary Fund ($ 650 million) and the issuance of government bonds. for a total of US $ 3,800 million, of which demand reached US $ 9,600 million, 2.5 times the amount originally spent.
“Although President Luís Abinader has never been in favor of borrowing“Faced with this economic and financial picture that ECLAC has outlined of the Dominican Republic, there is no better alternative than to use the confidence the government provides to obtain international loans,” he said.
Santana believes that “with transparent management, the fight against corruption, good investment and pandemic management, the Dominican nation will have a more promising 2021 in the face of the crisis situation not triggered by the current authorities, but inherited” .