NewsWhore
08-07-2008, 03:30 PM
Senators unanimously approved the government's supplemental budget in two consecutive readings yesterday. The budget now passes to the Chamber of Deputies for approval. There were no changes to the RD$31 million budget requested by the Presidency. However, there is an addendum stipulating that next year the government should disburse RD$5.1 billion in past due funds to the Central Bank to go towards the quasi-fiscal deficit and recapitalization of the Central Bank. The recapitalization funds are to be paid out every four months.
Commenting on the decision to postpone the payment, former Central Bank governor Bernardo Vega, writing in Clave newspaper, states that the decision to postpone the payment comes at a high cost to the government itself. He says that borrowing will now be more expensive, and notes that the government has yet to secure financing for the second line of the Santo Domingo Metro.
The RD$31 million budget is comprised of RD$20.7 billion in revenue from the PetroCaribe oil financing agreement and RD$10.2 billion in revenue surplus registered by the government this year. Fifty-three percent of the budget will be used to subsidize the energy sector as well as focusing the liquid gas propane subsidies on public transport drivers and Solidaridad welfare cardholders for home consumption.
More... (http://www.dr1.com/index.html#1)
Commenting on the decision to postpone the payment, former Central Bank governor Bernardo Vega, writing in Clave newspaper, states that the decision to postpone the payment comes at a high cost to the government itself. He says that borrowing will now be more expensive, and notes that the government has yet to secure financing for the second line of the Santo Domingo Metro.
The RD$31 million budget is comprised of RD$20.7 billion in revenue from the PetroCaribe oil financing agreement and RD$10.2 billion in revenue surplus registered by the government this year. Fifty-three percent of the budget will be used to subsidize the energy sector as well as focusing the liquid gas propane subsidies on public transport drivers and Solidaridad welfare cardholders for home consumption.
More... (http://www.dr1.com/index.html#1)