NewsWhore
08-28-2009, 02:10 PM
The business sector favors the government stepping up spending, but not on current expenditures. The International Monetary Fund has advised the government to stimulate the economy. But the business sector warns the government against taking loans that will not help development or create new jobs to maintain its present current spending levels.
As reported in Diario Libre, in the first half of the year Dominican government capital investments were sacrificed. They accounted for RD$13.9 billion, or only 10% of what had been planned. Meanwhile, government current spending was RD$95.58 billion, or 70% of what had been planned. The government barely invested RD$9.1 billion in infrastructure projects, which was not even 50% of what was invested in the same period last year. A decline in availability of foreign loans has reduced government capital investments.
The investment of the government in construction declined 65.8%, compared to a growth of 64% for the same period in 2008.
The Association of Industries (AIRD) agrees with Economy Minister Temistocles Montas that it is necessary to take measures to stimulate the economy. But it stresses it is counterproductive and even dangerous in the medium term to take on new loans for current spending. Manuel Diaz Cabral, president of the AIRD, says the business sector has favored the government resorting to seeking financial assistance from the IMF.
More... (http://www.dr1.com/index.html#5)
As reported in Diario Libre, in the first half of the year Dominican government capital investments were sacrificed. They accounted for RD$13.9 billion, or only 10% of what had been planned. Meanwhile, government current spending was RD$95.58 billion, or 70% of what had been planned. The government barely invested RD$9.1 billion in infrastructure projects, which was not even 50% of what was invested in the same period last year. A decline in availability of foreign loans has reduced government capital investments.
The investment of the government in construction declined 65.8%, compared to a growth of 64% for the same period in 2008.
The Association of Industries (AIRD) agrees with Economy Minister Temistocles Montas that it is necessary to take measures to stimulate the economy. But it stresses it is counterproductive and even dangerous in the medium term to take on new loans for current spending. Manuel Diaz Cabral, president of the AIRD, says the business sector has favored the government resorting to seeking financial assistance from the IMF.
More... (http://www.dr1.com/index.html#5)