World Bank Dangles US$1.8B, But DomRep Gov. Needs More

• The Dominican Republic’s fiscal deficit is expected to be reduced from 2.7% to 2.3% of the gross GDP during the period 2021-2026. 
• However, the country needs more fiscal space for health services, social safety nets, public investments, the accumulation of reserves against natural disasters and to ensure a descending debt trajectory. Consequently, the World Bank plans to invest US$1.8Bn in development projects. 
• Notably, on the heels of the COVID-19 pandemic, the Dominican Republic Government created an economic and social aid plan to help the population cope with the economic crisis that was aggravated by the war between Russia and Ukraine. 
• The set of measures aimed at reducing the impact on citizens’ out-of-pocket spending has consumed more than 11.0 billion pesos in the first four months of 2022. Considering that 15.0Bn pesos was spent in all of 2021 according to the Ministry of Economy, Planning and Development (MEPyD), the spend for 2022 is on track to be higher. 
• Despite the variation in the pace of public spending, the Minister of Economy, Ceara Hatton, has stated that the development of the budget execution has been satisfactory and that the fiscal balance continues to be positive.

(Source: Dominican Today)