​Second budget amendment reestablishes a fiscal deficit of 3% of GDP in 2021

DOMINICAN REPUBLIC - In Brief 18 Nov 2021 by Magdalena Lizardo

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The government sent to Congress a second amendment to the Public Budget for 2021. The amendment reflects a substantial improvement in the government's projected revenues for 2021, 8.3% higher than the amount projected in the first budget amendment for 2021. There is also a 1.4% increase in expenditures. The projected budget deficit is again at 3% of GDP, below the 4.1% of GDP projected deficit in the first budget amendment and equal to the initial budget deficit approved for 2021. The government has increased the amount of financial applications by DOP50.4 b, equivalent to USD0.89 b. The Ministry of Finance stated that this increase seeks to "create space for a potential liability management operation, subject to the credit conditions of the markets." The liability management operation would allow to organize the debt maturity structure, improve the profile and reduce the cost of financing, consistent with the debt strategy developed in the last year by the Dominican government. Public Budget Laws and 2sd. Budget Amendment Bill in 2021