Santo Domingo – Economist Jaime Aristy Escuder indicated this Friday that the public debt increased 12 percentage points from 2019 to 2021, going from 40 to 52 percent of the Gross Domestic Product. “The national debt went from 35,942 million, which was the amount in 2019, to 47,618 million dollars in 2021,” he specified during an interview on the Despierta con CDN program. In absolute terms, the increase was US$11,676 million.
The economist maintained that the course of August 2020-August 2021 reflects an increase of 8 billion dollars in debt as a result of expenses linked to covid-19.
“In 2019 the total debt was 35,942 million in the first months of 2020, it follows the normal evolution but it begins to change from August.”
Aristy Escuder stated that the evolution of the debt over the last few years was an average of between 2,500 and 3,000 million dollars.
He stated that sovereign bonds are the country’s main indebtedness factor.
“Sovereign bonds are the country’s main figure of indebtedness and rose 8 billion dollars, passing to 24 thousand 600 million dollars,” he explained.
He argued that the spending structure of the 2022 budget is similar to previous years, however, he ensures that it reflects a slight increase in current spending compared to capital spending.
“In the first 10 months of 2021, the average public investment was half of what should have been executed on a monthly average. For example, 10 billion pesos a month of public investment should have been executed and an average of five billion was invested,” he explained.
He explained that between November and December 2021 public investment rose by 48 billion pesos.
“What has most likely happened is that the government has borrowed, has financed the deficit, then registers the transfer payment and the process was not executed,” he said in a hypothetical case.
He stated that during the coming weeks the increase in oil will generate a rise in fuels in the domestic market.
“There is an 80 percent probability that there will be an increase in fuels.
This week, President Luis Abinader warned that it is impossible for the Government to continue with subsidies to keep fuel prices low, which last year cost more than 13 billion pesos.
“It is impossible to continue with that. If (oil prices) continue to rise, the time will come when we will have to talk to the country,” said the president.