NewsWhore
07-18-2008, 05:10 PM
In his long-awaited address to the nation last night, President Leonel Fernandez presented the Integrated Action Plan, which consists mainly of a collection of cost-cutting measures aimed at compensating lower-income sectors of the population for rising fuel and food costs.
Fernandez repeated the intention to cut government spending by 20%, or RD$20 billion this year. The 20% cut promise was also made in his 2004 inaugural address, but never implemented. The goal is to finish the year with a GDP deficit of 2%. This move will complement recent Central Bank fiscal policy that seeks to constrain rising inflation.
Fernandez also announced that no new government construction projects would be started, and that the government would give priority to finishing projects that are 75% complete.
The government is also looking to reduce the costs of projects being built with foreign loans by US$100 million.
Fernandez said that the government advertising budget would be reduced by 25% and that no new office equipment and vehicles would be purchased for a one-year period, with the exception of the National Police and the ministries of Public Health and Agriculture.
The President also announced a 25% reduction in the purchase of fuel for government officials. He did not quantify but announced there would be cuts in allocations to government officials for cellular phones and travel allowances.
Fernandez also announced the creation of the "Bonogas para Choferes" plan, to benefit 24,000 pre-selected owners of public transport vehicles who will be able to purchase six gallons of subsidized GLP per day at a cost of RD$38 per gallon, and benefit from 16% ITBIS tax exemptions on car part replacements.
Fernandez then announced the creation of "Bonogas para Hogares" whereby 800,000 pre-selected Solidarity Card beneficiaries will be able to purchase as much as six gallons of GLP for domestic use each month at a subsidized rate of RD$38 per gallon. Fernandez said that the government plans to increase the number of Solidarity Card holders to 800,000, up from the current 400,000 within the next 60 days.
The President reiterated his support for the production of bio-ethanol and bio-fuels as a response to the nation's dependency on oil.
Fernandez authorized a 5% reduction in the salaries of central government, decentralized and autonomous institution employees who make between RD$151,000 and RD$200,000 a month and a 10% reduction for employees who make RD$200,000 and above. He said there would also be a freeze on the public payroll, backdated to 31 December 2007, with exceptions for schools and hospitals. At the same time, there will be a 15% increase in the salaries of public employees who make up to RD$30,000 (97.6% of government employees earn this wage or less).
According to Fernandez, many of these initiatives will be implemented immediately and he has asked the Hacienda Ministry to submit the complementary budget for the plan of action to Congress. Fernandez said that the United Nations Development Program (UNDP) would help the government combat the increase in food prices. He announced that 500,000 tareas of government-owned land would be used to develop a joint venture type project for mass production of food.
For full text of the speech, see http://dr1.com/news/2008/071806_discurso.pdf
More... (http://www.dr1.com/index.html#1)
Fernandez repeated the intention to cut government spending by 20%, or RD$20 billion this year. The 20% cut promise was also made in his 2004 inaugural address, but never implemented. The goal is to finish the year with a GDP deficit of 2%. This move will complement recent Central Bank fiscal policy that seeks to constrain rising inflation.
Fernandez also announced that no new government construction projects would be started, and that the government would give priority to finishing projects that are 75% complete.
The government is also looking to reduce the costs of projects being built with foreign loans by US$100 million.
Fernandez said that the government advertising budget would be reduced by 25% and that no new office equipment and vehicles would be purchased for a one-year period, with the exception of the National Police and the ministries of Public Health and Agriculture.
The President also announced a 25% reduction in the purchase of fuel for government officials. He did not quantify but announced there would be cuts in allocations to government officials for cellular phones and travel allowances.
Fernandez also announced the creation of the "Bonogas para Choferes" plan, to benefit 24,000 pre-selected owners of public transport vehicles who will be able to purchase six gallons of subsidized GLP per day at a cost of RD$38 per gallon, and benefit from 16% ITBIS tax exemptions on car part replacements.
Fernandez then announced the creation of "Bonogas para Hogares" whereby 800,000 pre-selected Solidarity Card beneficiaries will be able to purchase as much as six gallons of GLP for domestic use each month at a subsidized rate of RD$38 per gallon. Fernandez said that the government plans to increase the number of Solidarity Card holders to 800,000, up from the current 400,000 within the next 60 days.
The President reiterated his support for the production of bio-ethanol and bio-fuels as a response to the nation's dependency on oil.
Fernandez authorized a 5% reduction in the salaries of central government, decentralized and autonomous institution employees who make between RD$151,000 and RD$200,000 a month and a 10% reduction for employees who make RD$200,000 and above. He said there would also be a freeze on the public payroll, backdated to 31 December 2007, with exceptions for schools and hospitals. At the same time, there will be a 15% increase in the salaries of public employees who make up to RD$30,000 (97.6% of government employees earn this wage or less).
According to Fernandez, many of these initiatives will be implemented immediately and he has asked the Hacienda Ministry to submit the complementary budget for the plan of action to Congress. Fernandez said that the United Nations Development Program (UNDP) would help the government combat the increase in food prices. He announced that 500,000 tareas of government-owned land would be used to develop a joint venture type project for mass production of food.
For full text of the speech, see http://dr1.com/news/2008/071806_discurso.pdf
More... (http://www.dr1.com/index.html#1)