Government announces Public Administration Reform

DOMINICAN REPUBLIC - In Brief 17 Sep 2024 by Magdalena Lizardo

The government announced yesterday its proposal for restructuring, rationalization, and elimination of duplications in public institutions, a key element of the fiscal reform it has committed to implementing. The goal is to reduce spending and improve efficiency. According to the government, the public administration reform aims to: 1) optimize resources by freeing up financial and human resources to be redirected towards critical areas such as healthcare, education, and public security, 2) improve coordination of functions by reducing fragmentation, 3) eliminate duplications, and 4) reduce bureaucracy through the simplification of the state structure. The reform includes the elimination of 5 institutions, the integration of 6 other institutions whose functions will be absorbed by existing ministries, and the creation of 5 new institutions resulting from the merger of 10 currently existing institutions. Eighty percent of the proposed changes require congressional approval, and they are expected to take effect by the end of 2024 or early 2025. The most significant mergers, due to the volume of resources they manage and the opportunities to generate synergies, are the creation of the Ministry of Finance and Economy, resulting from the merger of the Ministry of Economy, Planning and Development with the Ministry of Finance, and the merger of the Ministry of Education (in charge of pre-university education) with the Ministry of Higher Education, Science, and Technology. Other measures aimed at reducing spending include a freeze on the public payroll, except for the hiring of medical staff, teachers, and police officers; limitations on government advertising, luxury vehicle...

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