NewsWhore
07-03-2008, 02:30 PM
Between January and June 2008 the government spent RD$130.9 billion, of which RD$43.5 billion or 32.4% was spent on subsidizing fuel, free trade zones, bakers, milk producers, transport, farmers and other sectors. The government spent an additional RD$41.5 billion, interests payments accounted for RD$134.1 billion, loans RD$4.88 billion and RD$28.9 billion went towards capital spending. The central government's revenues were up with the Tax Department (DGII), Customs and the Treasury collecting a total of RD$132.3 billion. This is 9.9% more than was budgeted and is 4.7% higher than the same period in 2007. The report by the Ministry of Hacienda says that inflation between January and May was 5.07%. The report also indicates that there was less money circulating in the DR in June, with RD$133.4 billion in circulation. This is RD$655.2 billion less than in May 2008. Listin Diario writes that this restrictive policy could be a way of combating inflation caused by the devaluation of the dollar and fuel price increases. Gross international reserves registered at US$2.6 billion in June; that is US$2.21 billion less than May. Net international reserves decreased from US$2.2 billion to US$1.95 billion.
On the same subject, economist Bernardo Vega, writing in Clave newspaper, says that in order to keep inflation under control after the big spending of the election period, the government has resorted to selling reserves, increasing interest rates and putting new banking reserve restrictions in place to reduce money in circulation.
More... (http://www.dr1.com/index.html#2)
On the same subject, economist Bernardo Vega, writing in Clave newspaper, says that in order to keep inflation under control after the big spending of the election period, the government has resorted to selling reserves, increasing interest rates and putting new banking reserve restrictions in place to reduce money in circulation.
More... (http://www.dr1.com/index.html#2)