Sunday, June 4, 2023

Collections January-April are above estimates thanks to the DGII

In the first four months of this year, the Government obtained collections for RD$341,131.7 million, which represents an increase of 10.6% more than the RD$308,303.8 million collected in the same period of 2022.

The amount collected reaches the estimate of income for that period thanks to the increase in the collections of the General Directorate of Internal Taxes (DGII) with an amount of RD$8,144.6 million above the estimate.

With this extra income, the Government was able to compensate for the fall that the General Directorate of Customs (DGA) in collections, which have not only been below estimates, but also slightly less than what was collected in the same period of the previous year.

In the four-month period January-April 2023, the DGII registered an accumulated collection of RD$253,429.4 million, for a 103.3% compliance, which represents RD$8,144.6 million above the RD$245,284.8 million estimated for this period.

Meanwhile, Customs, which should have collected at least RD$78 billion in the first four months of this year, remained at around RD$70 billion, according to official statistics. The third source of revenue for the State is the National Treasury (TN), whose contribution is minimal in the income budget.

The reason for the drop in Customs collections It is due to the reduction in the prices of some imported products, as well as in freight costs, which reached high prices last year, but are now falling. To the extent that the import cost is reduced, so is the collection at the country’s customs.

For this year the Government plans to collect RD$1 trillion 14,703.8 million, through the DGII, Customs and TN, while from other sources it expects to receive RD$25,301.7 million to complete RD$1 trillion 40,005.5 million established in the general budget of the nation.

While the estimate of expenses is RD$1 billion 247,578.1 million; Therefore, the difference between the estimated collection and the projected expenditure (fiscal deficit), which is RD$207,572.6 million, will be covered with indebtedness.

In the event that collections do not reach the estimated level and that the Government maintains the same projection of expenses, then the budget would have to be reformulated in order to increase the expected fiscal deficit, which would imply taking more loans than programmed.

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