Thursday, November 30, 2023

The electricity sector absorbs 58.1% of subsidy spending so far in 2023

Between January 1 and May 5, 2023, the Dominican Government allocated RD$46,028.9 million in subsidies to mitigate the inflation and prevent the population from suffering the effects of rising prices of raw Materials in international markets. This amount is equivalent to 0.7% of the gross domestic product (GDP) and 32% more (RD$11,165.6 million) than the amount allocated in the first semester of 2022 (RD$34,863.3 million).

Of the expenditure executed in subsidy so far this year, the transfers to the electric sector totaled RD$26,741.5 million, equivalent to 58.1%, according to the most recent “Macroeconomic Situation Report” of the Ministry of Economy, Planning and Development (MEPyD).

Also, follow the transfers to the Get over yourself program with an execution of 30.2% (RD$13,880.5 million). To prevent the rise in fuels, which affects the price of food, transportation and other goods and services, the Government spent RD$3,977.0 million in the analyzed period, for 8.6% of the global amount spent on subsidies.

When breaking down the data, it is observed that RD$773.5 million were executed in transport subsidies; in food RD$156.4 million and RD$500.0 million as a subsidy to fertilizers.

Social programs

The macroeconomic report details that as of May 5, 2023, the Government allocated more than RD$14,330.2 million in social subsidieswhich represents 31.7% of the budgeted expenditure for this concept for 2023.

In this period, 96.6% of the total value was distributed among the resources destined to the feed yourself program, with RD$10,157.3 million (70.9%); to the GLP Hogares subsidy (17.0%) and the Bono Luz subsidy (8.7%), all included within the Supérate program.

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