The Dominican Government and the European Union today announced the signing of a budget support agreement of 14.8 million euros, which will be disbursed by this international cooperation agency, over the next three years.
The announcement was made during an act that took place at the headquarters of the Ministry of Finance, headed by the head of the governing body of public finances, Donald Guerrero Ortiz; the head of the Delegation of the European Union in the country, Ambassador Gianluca Grippa, and the general director of the Multilateral Cooperation and National Computer of the European Funds for Development, Ambassador Antonio Vargas.
The objective of the agreement is to promote an efficient, transparent and results-oriented public administration, where the allocation of resources corresponds to national development priorities and thereby contribute to a more equitable distribution of income.
The Dominican government will achieve this goal by giving new impetus to the public finance management reform strategy led by the Ministry of Finance, within the framework of the 2030 National Development Strategy, informed Minister Guerrero Ortiz.
The work plan that will be implemented includes actions for the sustainable management of public finances, aimed at improving the training of internal revenues, as well as their efficient distribution and use, seeking to reduce social inequality.
Among the processes that will be impacted by the agreement, the Minister of Finance cited: a budget oriented to results, public procurement, efficient and transparent, greater participation of women in public procurement, accounting based on international standards for the public sector , management of financial assets and liabilities and strengthening of the cadastre and administration of national assets.
The program’s resources will be disbursed under two modalities: a fixed tranche of 5.12 million euros and a variable tranche of 7.68 million euros. Approximately 2.0 million will be allocated to the hiring of a consulting firm that will provide technical assistance during the term of the agreement.
When speaking during the activity, the head of the Delegation of the European Union in the country revealed that the budget support modality brings together the largest amount of financial support that the European Union grants to the Dominican Republic.
“Budget support is the modality of cooperation proposed by the European Union when the beneficiary country has the capacity to apply the appropriate fiscal and monetary policies to advance in the management and reforms of public finances, and to establish relevant planning and credible of its public policies, “explained Ambassador Grippa.
He indicated that during the last ten years, the European Union has forged a solid relationship of cooperation with the Ministry of Finance that is evidenced through achievements, such as transparency and accountability both in the management of public finances and in the education, which have placed the European Union as a privileged partner.
On this occasion, in addition to strengthening the link between planning, budgeting and public procurement to incorporate investment projects into general and multi-year budgets, the European Union will give its support to the country to increase public awareness of the fair and progressive implementation of the collection of taxes, said the official.
Equally to achieve the reduction of the highest tax evasion through greater efficiency, support for the fight against money laundering and modernization and computerization of the tax regime that allows the tax base to be expanded.
Grippa thanked the Minister of Finance for his determination and perseverance to advance the reform, as well as the working groups that made up the governing body of public finances, Digecoom, the Ministry of Economy, Planning and Development and the European Union for the definition of the budget support agreement.
On his side, Ambassador Vargas Hernández pondered the significance of the agreement and reaffirmed the commitment of his office and the institution he directs with the policy of transparency and institutional strengthening implemented by the government of the President of the Republic, in line with the first axis of the National Development Strategy.
He recalled that this strategic axis postulates the concepts of ethics, transparency, equity and governability as fundamental elements that must prevail in the actions of institutions to advance towards the sustainable development of the country.