NewsWhore
05-05-2009, 06:20 PM
The Dominican government reduced capital spending and increased spending on salaries in the first quarter of 2009 compared to the same quarter in 2008. In the first quarter the payrolls absorbed RD$15.6 billion, nearly RD$2.8 billion more than the same period in 2008. According to a report on budgetary performance for the first quarter, the government also cut back on capital spending some 58.4%, spending just RD$5.77 billion on construction, projects and purchases of good and services, while last year the figure for the first quarter was RD$13.8 billion.
According to Listin Diario, what happened is easy to understand: the authorities reduced their capital spending instead of cutting current expenditures. From RD$50.36 billion in 2008, the government spent RD$46.84 billion in 2009. Since the government knew it would have less income and had to cut expenses, it preferred to sacrifice 58% of the capital expenditures and just 7% of the current expenditures.
According to the Ministry of Hacienda's Budget Directorate, the government had to find RD$11.75 billion in financing of which RD$9.31 billion came from local banks and RD$2.43 billion came from international organizations.
In the first quarter of 2008, there was a RD$2.19 billion surplus, however in the remaining three quarters the deficit went from RD$1.36 billion in the second quarter, RD$15.83 billion in the third quarter and, finally to RD$39 billion in the third quarter, for a total budgetary deficit of some US$56 billion.
In January 2009 the budget showed a surplus of RD$4.82 billion, but in February there was a deficit of RD$1.19 billion and in March it was RD$1.97 billion.
More... (http://www.dr1.com/index.html#3)
According to Listin Diario, what happened is easy to understand: the authorities reduced their capital spending instead of cutting current expenditures. From RD$50.36 billion in 2008, the government spent RD$46.84 billion in 2009. Since the government knew it would have less income and had to cut expenses, it preferred to sacrifice 58% of the capital expenditures and just 7% of the current expenditures.
According to the Ministry of Hacienda's Budget Directorate, the government had to find RD$11.75 billion in financing of which RD$9.31 billion came from local banks and RD$2.43 billion came from international organizations.
In the first quarter of 2008, there was a RD$2.19 billion surplus, however in the remaining three quarters the deficit went from RD$1.36 billion in the second quarter, RD$15.83 billion in the third quarter and, finally to RD$39 billion in the third quarter, for a total budgetary deficit of some US$56 billion.
In January 2009 the budget showed a surplus of RD$4.82 billion, but in February there was a deficit of RD$1.19 billion and in March it was RD$1.97 billion.
More... (http://www.dr1.com/index.html#3)