NewsWhore
08-01-2008, 05:30 PM
Business sectors are expressing concern that the Fernandez Administration seeks to reduce funds allotted to recapitalize the Central Bank and pay interest on certificates of deposit, as per a bill sent to Congress. The complementary budget bill calls for the approval of an increase in the Central Government deficit to the tune of RD$20.76 billion.
As reported in El Caribe, in the 2008 National Budget RD$9 billion were allotted to make interest payments on the certificates that are part of the quasi-fiscal deficit. But in the bill the Executive Branch sent to the Senate on Wednesday, the government is requesting permission to reduce the payments by RD$5.05 billion, or 56%.
Former Central Bank governor Carlos Despradel, former president of the Council of Business (Conep) and Pablo Piantini, president of the Young Entrepreneurs Association (Anje) concur to maintain macroeconomic stability, the government would be better off reducing administrative spending, such as money used for government advertising campaigns that do not help the economy.
Hacienda Minister Vicente Bengoa says they are just postponing the payment. "We are before a profound situation of imported crisis, that obliges the authorities to postpone the disbursement of the RD$5.05 billion to the Central Bank for the remainder of the year." The government attributes the deficit to rising international costs, but local sectors say the deficit would be manageable if the government had not overspent into the 2008 presidential election, especially because the Department of Taxes (DGII) is expected to post a surplus of RD$17 billion this year.
More... (http://www.dr1.com/index.html#2)
As reported in El Caribe, in the 2008 National Budget RD$9 billion were allotted to make interest payments on the certificates that are part of the quasi-fiscal deficit. But in the bill the Executive Branch sent to the Senate on Wednesday, the government is requesting permission to reduce the payments by RD$5.05 billion, or 56%.
Former Central Bank governor Carlos Despradel, former president of the Council of Business (Conep) and Pablo Piantini, president of the Young Entrepreneurs Association (Anje) concur to maintain macroeconomic stability, the government would be better off reducing administrative spending, such as money used for government advertising campaigns that do not help the economy.
Hacienda Minister Vicente Bengoa says they are just postponing the payment. "We are before a profound situation of imported crisis, that obliges the authorities to postpone the disbursement of the RD$5.05 billion to the Central Bank for the remainder of the year." The government attributes the deficit to rising international costs, but local sectors say the deficit would be manageable if the government had not overspent into the 2008 presidential election, especially because the Department of Taxes (DGII) is expected to post a surplus of RD$17 billion this year.
More... (http://www.dr1.com/index.html#2)