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Fixed percentages in the Budget are unreal goals

Economists feel budgetary assignments, with the exception of Education and Health, should be based on expenses, goals and results of the institutions and agencies

SANTO DOMINGO. If besides complying with the legal assignment of 4% of the Gross Domestic Product (GDP) for Education, the government takes on the fixed percentages established in different laws, then the Autonomous University of Santo Domingo (5%), the city governments (10%) and the Justice Department (4.10% for the Judicial Power and the Justice Department), just to mention some sectors benefited by the special regime, would take away 38% of the RD $630.9 billion budgeted for the next year.

And if to this investment we add what is provided for in the project of the Law of the General Budget of the State for the electricity subsidy (RD $40.9 billion) and the payment of interest on the debt (RD $88.0 billion), the government would have committed 48.4% of its projected income for the year 2015.

For economists Henry Hebrard and Jeffrey Lizardo this clash between budgetary reality and desired budgetary assignments puts into evidence the need to put under the microscope these different special budgetary legislations and, in addition, the urgency to restructure the criteria of expenditures and income of the General Budget of the State.

“In reality this responds to situations of the past. The ideal would be to revise this and be frank. If this has not been able to be fulfilled, then there is a need to modify these laws, or perhaps to adjust the percentages or perhaps to return to the concept of public administration and this is that all the funds should go into a box and from this fund later on be distributed with regard to how things are,” notes Hebrard.

At the same time Lizardo points out that he is not an agreement with the assignment of a fixed percentage of the income to a determined area. “What I agree to is that the financing has to be given out based on results and goals,” he expressed.

Both men coincided in noting the National Development Strategy (END), established by the Law 1 – 12, is a point of reference for rethinking this budgetary structure.

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Category: DR News |

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Last updated October 24, 2016 at 6:05 PM
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