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Dominican Republic: Economist sees new authorities face “nightmare” over covid-19

The economist Nelson Suárez affirmed yesterday that the fall in tax collections and the increase in public spending due to the effect of the covid-19 coronavirus will be a “real nightmare” for the authorities who will take power on August 16.

The sources of income that show the greatest decreases in the first half of this year with respect to 2019 are internal taxes on goods and services, (-) RD $ 31,762.4 million; income and income taxes, (-) RD $ 15,475.3 million; property taxes (-) RD $ 5,258.8 million; taxes on foreign trade, (-) RD $ 4,954.7 million, and Ecological and miscellaneous Taxes (-) RD $ 178.7 million, says Suárez.

“It is evident that the negative impact on the public budget consisting of falling collections and increased spending becomes a real nightmare for the new authorities who will take over on August 16 in a national and international scenario characterized by the recession induced by social isolation policies, ”he said.

He stated that the accumulated budget deficit between January and June of this year amounts to RD $ 116,684.3 million, overcoming the budgetary imbalance registered in the same period of 2019 by some RD $ 96,582.7 million, generated by a drop in current income, such as the tax collections that RD $ 57.639.5 million fell in relation to 2019.

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