NewsWhore
09-29-2008, 02:20 PM
Despite having the experience of two previous government terms, there is the generalized perception that President Leonel Fernandez's administration fails to act when faced with multiple pressing problems. The situation is exacerbated by increased insecurity and growing pessimism, despite the optimistic outlook from the President and his economic team, who maintain that the DR will not be affected by the US financial crisis, as Osvaldo Santana writes in El Caribe.
Santana writes that the lack of action is explained in the recent history of the increase in spending in 2008, of RD$47.48 billion, or 38.5% increase compared to the previous year (January to 15 August). The increase in spending took place in an electoral year, he observes. He also points out that from January to August 15, 2007, the Fernandez administration spent RD$123.43 billion, but for the same period this year it has spent US$170.92 billion, according to the Ministry of Hacienda. The government had to resort to a supplementary budget, and modify the Central Bank capitalization law to postpone payment of resources it would have applied to the quasi-fiscal debt until 2009.
Santana comments that in the first months of the year, together with the rush in government spending, violence and criminality were up. According to the Ministry of Interior and Police, there were 1,400 murders from Jan to July 2007. This year, 1,654 violent deaths had been reported by October, included 271 in clashes between drug gangs.
Santana writes that the recent floods that have affected large areas of the country add to the local pessimism. Several towns are also affected by declining foreign exchange remittances, as family members living in the US and Spain become more cautious with their spending.
Business leaders have criticized the government's failure to cut its spending, and to act to tackle problems such as drug trafficking, the crises in the electricity and agriculture sectors, as well as others affected by inefficiency in government.
More... (http://www.dr1.com/index.html#7)
Santana writes that the lack of action is explained in the recent history of the increase in spending in 2008, of RD$47.48 billion, or 38.5% increase compared to the previous year (January to 15 August). The increase in spending took place in an electoral year, he observes. He also points out that from January to August 15, 2007, the Fernandez administration spent RD$123.43 billion, but for the same period this year it has spent US$170.92 billion, according to the Ministry of Hacienda. The government had to resort to a supplementary budget, and modify the Central Bank capitalization law to postpone payment of resources it would have applied to the quasi-fiscal debt until 2009.
Santana comments that in the first months of the year, together with the rush in government spending, violence and criminality were up. According to the Ministry of Interior and Police, there were 1,400 murders from Jan to July 2007. This year, 1,654 violent deaths had been reported by October, included 271 in clashes between drug gangs.
Santana writes that the recent floods that have affected large areas of the country add to the local pessimism. Several towns are also affected by declining foreign exchange remittances, as family members living in the US and Spain become more cautious with their spending.
Business leaders have criticized the government's failure to cut its spending, and to act to tackle problems such as drug trafficking, the crises in the electricity and agriculture sectors, as well as others affected by inefficiency in government.
More... (http://www.dr1.com/index.html#7)