NewsWhore
10-16-2008, 03:40 PM
Hacienda Minster Vicente Bengoa says the government will disburse RD$300 million to the Ministry of Agriculture this month so that farmers can pay their debts. Bengoa said that RD$120 million would be paid to dairy producers, RD$100 million to onion farmers and RD$80 million to bean farmers. The Minister also announced that the government is allocating a further RD$350 million to be distributed by the Ministry of Agriculture to farmers for planting. Another RD$150 million will be spent on helping farmer's markets. Bengoa said the money couldn't be paid in September because there had been an increase in government spending in other areas and because of a 9.8% reduction in government revenue.
Bengoa attributed the drop in revenues in part loss of tax revenue after Falconbridge Dominicana, the largest mining company in the country, suspended operations in August for four months due to high oil costs and a drop in nickel prices. The company is switching from oil to coal at the time and carrying out maintenance.
Bengoa says it is the first time revenues have not met Tax Department (DGII) estimates. According to the Minister, restrictive measures by government, such as reducing public spending, are some of the ways in which revenues have been affected. The measures have had led to an increase in interest rates, fewer imports and affected tax collections by Customs (DGA) and have halted the economy. While Bengoa refused to admit that the international financial crisis has affected the DR, he said that September has been the worst month so far this year as well as the worst in recent years. Bengoa also informed that US$70 million were paid in debts on sovereign bonds, US$75 million were paid to the energy sector, while US$131 million were paid on the foreign debt and US$5 million on the national debt.
More... (http://www.dr1.com/index.html#2)
Bengoa attributed the drop in revenues in part loss of tax revenue after Falconbridge Dominicana, the largest mining company in the country, suspended operations in August for four months due to high oil costs and a drop in nickel prices. The company is switching from oil to coal at the time and carrying out maintenance.
Bengoa says it is the first time revenues have not met Tax Department (DGII) estimates. According to the Minister, restrictive measures by government, such as reducing public spending, are some of the ways in which revenues have been affected. The measures have had led to an increase in interest rates, fewer imports and affected tax collections by Customs (DGA) and have halted the economy. While Bengoa refused to admit that the international financial crisis has affected the DR, he said that September has been the worst month so far this year as well as the worst in recent years. Bengoa also informed that US$70 million were paid in debts on sovereign bonds, US$75 million were paid to the energy sector, while US$131 million were paid on the foreign debt and US$5 million on the national debt.
More... (http://www.dr1.com/index.html#2)