Economy October 5, 2023 | 10:49 am

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Ministries of Housing and Public Works will have fewer resources in 2024

Santo Domingo.- In 2024, ten public entities are expected to reduce their budgets, with the Ministry of Housing, Habitat, and Buildings (Mivhed) facing a significant decrease of 31.4%, and the Ministry of Public Works and Communications (MOPC) seeing a reduction of 30.4%. These reductions are notable compared to their 2023 allocations, but it’s worth noting that subsidies and social programs are planned to be maintained.

The decision to reduce these budgets is occurring in a pre-electoral year, even though the Executive Branch had previously aimed to increase public spending on impactful social projects.

As per the current budget data until September 25 of the current year, Mivhed had programmed 19 billion pesos. For the next year, this budget would be reduced to 13 billion, equivalent to 0.2% of the gross domestic product (GDP).

Regarding the MOPC, its budget would decrease from 70.8 billion pesos in 2023 to 49 billion for the upcoming year, representing 0.7% of GDP.

The distribution of expenses shows that Mivhed will allocate 2.9 billion pesos for current expenses and 10.3 billion for capital expenses. The majority of the resources allocated for investment will be directed towards building construction, reconstruction, and improvement (50.5%), followed by core activities (20%), and housing and habitat development (19.9%).

For the MOPC, the budget distribution includes 16 billion pesos for current expenses and 33 billion for capital expenditure. The largest portion of the budget allocation is aimed at the access and proper use of the transportation service (35.7%), followed by maintenance, security, and road assistance (19.5%).

Despite the reductions in resources for social impact entities, the budget proposal still includes aid programs for vulnerable sectors. The Presidency of the Republic is allocated 126.5 billion pesos for the fiscal year 2024, representing a 6.1% increase compared to the approved budget of 2023 and 1.7% of the GDP.

Within these resources, the Social Policy Cabinet is allocated the largest share, with 72.6 billion pesos (57.4%), primarily for the social protection program with 57 billion. Other allocations include 9 billion for comprehensive social assistance programs, and 1.5 billion for the comprehensive development and protection of the elderly, among others.

Notably, the social protection program includes significant transfers for programs like “Aliméntate” (part of the “Supérate” program) with 30 billion pesos, subsidies for liquefied petroleum gas (LPG) consumption for homes with 7.6 billion, “Bono Luz” subsidies with 4.5 billion pesos, LPG subsidies for transportation with 683 million, and aid for the elderly amounting to 400 million, among other allocations.

The remaining resources will be distributed with 23.3% (29.5 billion pesos) by the Ministry of the Presidency, 16.8% (21 billion) by the Administrative Ministry of the Presidency, and 2.5% (3 billion) by the Comptroller General’s Office of the Republic.

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