NewsWhore
09-07-2006, 03:20 PM
Jesuit Priest Jose Luis Aleman has joined the debate regarding whether the government should increase taxes or issue a bond in order to reduce the quasi-fiscal deficit of the Central Bank that at present is around RD$161 billion. Aleman, who is dean of economics of the PUCMM university, described the proposal for issuing a bond as a "dangerous" one. As reported in El Caribe, he says that the government could become accustomed to this financing and would find itself obliged to increase taxes to meet the payment schedule. He said that foreign economists have alerted that this could stimulate the fleeing of capitals. He advised against the country taking on more debt in foreign currency.
He also criticized the government fostering a new "fiscal reform." "In the country there has never been a reform to control how the government invests and spends the state revenues," said the economist when participating in a luncheon at the El Caribe. Aleman said that the problem with the reforms is that they are never been carried out to increase the investment made in health, education or other social services, but to make more money available for superfluous government spending, such as on current expenditures, per diems, advertising and payroll.
More... (http://www.dr1.com/index.html#6)
He also criticized the government fostering a new "fiscal reform." "In the country there has never been a reform to control how the government invests and spends the state revenues," said the economist when participating in a luncheon at the El Caribe. Aleman said that the problem with the reforms is that they are never been carried out to increase the investment made in health, education or other social services, but to make more money available for superfluous government spending, such as on current expenditures, per diems, advertising and payroll.
More... (http://www.dr1.com/index.html#6)