NewsWhore
03-08-2010, 01:20 PM
Economist Arturo Martinez Moya writes today in Hoy that the government set RD$22.74 billion or US$600 million in the budget for the issuing of the sovereign bonds, prior to their issuing, at an exchange rate of RD$37.90. This means the government is expecting the peso to depreciate 3.8% compared to 2009.
His point, nevertheless is that without discussing the increase with anyone, the government sent a bill to Congress increasing the total to US$1 billion, or US$400 million more. The bill was fast tracked in the Congress, where the PLD is majority.
Martinez Moya observes this is one reason why it is not convenient for the country that the government have majority in Congress.
He comments that the government has not explained why it failed to meet its commitment with the International Monetary Fund. The government had committed to saving RD$10.36 billion in the last two months of 2009. Instead, he writes, it increased expenditures for paying wages. He makes the point that while tax revenues are below estimates, the expenses of the government continue to rise.
"The intention of the government to pass under the table an increase in debt of US$400 million should be rejected because it commits the government revenues and the hard currency receipts of the country. The government cannot expect the people to pay more taxes, especially when the difficult economic times call for prudence," he writes.
Hacienda Minister Vicente Bengoa has defended the placement, saying that the US$1 billion are contemplated in the RD$115 billion in financing chapter of the National Budget.
More... (http://www.dr1.com/index.html#5)
His point, nevertheless is that without discussing the increase with anyone, the government sent a bill to Congress increasing the total to US$1 billion, or US$400 million more. The bill was fast tracked in the Congress, where the PLD is majority.
Martinez Moya observes this is one reason why it is not convenient for the country that the government have majority in Congress.
He comments that the government has not explained why it failed to meet its commitment with the International Monetary Fund. The government had committed to saving RD$10.36 billion in the last two months of 2009. Instead, he writes, it increased expenditures for paying wages. He makes the point that while tax revenues are below estimates, the expenses of the government continue to rise.
"The intention of the government to pass under the table an increase in debt of US$400 million should be rejected because it commits the government revenues and the hard currency receipts of the country. The government cannot expect the people to pay more taxes, especially when the difficult economic times call for prudence," he writes.
Hacienda Minister Vicente Bengoa has defended the placement, saying that the US$1 billion are contemplated in the RD$115 billion in financing chapter of the National Budget.
More... (http://www.dr1.com/index.html#5)