Government spends on production

[NewsWhore]

Economy & Planning Minister Temistocles Montas says the government is giving priority to investments in the productive sectors. The minister says that proof of coherence in government economy policy is that the country has averaged 8.3% growth over the 2005-2008 period with an average sinflation rate of 6.5%. The bureaucrat maintains that the economic policy achievements have been possible due to fiscal policies and the responsible taking on of debt. He says that the measures recently announced by the Central Bank, including interest rate reductions, go hand in hand with prudence in public spending and granting of incentives to the productive sectors as part of the coordination that exists between the fiscal and monetary policies. He added that in spite of having to govern "with hurricane force winds against it", the Leonel Fernandez administration has been capable of not only overcoming the difficulties but also managing to lead the country tos good economic and social performance." Although he did not mention him by name, Montas seemed to be denying the statements by economist Carlos Despradel made last Sunday when he said that in the country there are two governments. One is at the Central Bank and another acts from the Executive Branch, and marches to a different tune. Despradel, according to the Nuevo Diario newspaper, said that the fiscal policy moves contrary to the correct measures that the Central Bank has been applying. Among these he had mentioned the freeing-up of RD$10 billion in legal reserves in the commercial banks in order to bolster the economy and favor job creation.

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