NewsWhore
08-21-2009, 03:40 PM
It's RD$9,915 million or RD$9.9 billion and not RD$915 million, Hacienda Minister Vicente Bengoa clarified yesterday. News reports had carried the erroneous figure. Hacienda has published online figures indicating that the government received RD$113.08 billion and spent RD$109.56 billion, for a surplus of RD$3.5 billion. But economists corroborate the deficit is at RD$10 billion, as reported in Diario Libre.
Luis Nunez, president of the Association of Mercants and Industries of Santiago (ACIS) called unsustainable the government's announcement it would cover the gap between spending and revenues by borrowing is unsustainable. He called instead for a reduction in government spending, that government adjust to the having less sales taxes and other taxes, as well as sliding imports and exports.
He said the business community is concerned the country take on more loans because these are used at discretion of the government.
Pedro Perez of the National Organization of Malls (ONEC), Ignacio Mendez of the Federation of Industrial Associations (FAI), and Manuel Cabrera of the Association of Industries of Herrera (AEIH) corroborated the concern.
As reported in Hoy, Perez and Cabrera object that the government issue sovereign bonds. They feel the cost of these will be too high. Instead, they suggest the government reach an agreement with the International Monetary Fund. They understand the IMF will offer funds at a lower cost and will help curb unnecessary government spending.
Cabrera says the business sector has always called for austerity in government, but the government has been deaf to their request.
Furthermore, economist Isidoro Santana says that borrowing is not necessarily bad. "It would not be harmful if the money were used well," he said as reported in Hoy. He explained that the concerns are because of the government's track record in the misuse of the foreign loans.
More... (http://www.dr1.com/index.html#3)
Luis Nunez, president of the Association of Mercants and Industries of Santiago (ACIS) called unsustainable the government's announcement it would cover the gap between spending and revenues by borrowing is unsustainable. He called instead for a reduction in government spending, that government adjust to the having less sales taxes and other taxes, as well as sliding imports and exports.
He said the business community is concerned the country take on more loans because these are used at discretion of the government.
Pedro Perez of the National Organization of Malls (ONEC), Ignacio Mendez of the Federation of Industrial Associations (FAI), and Manuel Cabrera of the Association of Industries of Herrera (AEIH) corroborated the concern.
As reported in Hoy, Perez and Cabrera object that the government issue sovereign bonds. They feel the cost of these will be too high. Instead, they suggest the government reach an agreement with the International Monetary Fund. They understand the IMF will offer funds at a lower cost and will help curb unnecessary government spending.
Cabrera says the business sector has always called for austerity in government, but the government has been deaf to their request.
Furthermore, economist Isidoro Santana says that borrowing is not necessarily bad. "It would not be harmful if the money were used well," he said as reported in Hoy. He explained that the concerns are because of the government's track record in the misuse of the foreign loans.
More... (http://www.dr1.com/index.html#3)