NewsWhore
03-02-2011, 03:20 PM
The government ended 2010 with a fiscal deficit of RD$9.9 billion, according to reports from the Budget Director for the period of January to December. The deficit closed at RD$53.6 billion, but the level agreed on with the International Monetary Fund was RD$43.7 billion.
According to economists Bernardo Fuentes, Henri Hebrard and Bernardo Vega, there is a fiscal blockage in the fifth review of the Stand-by arrangement with the IMF. According to Fuentes, this increase in the deficit is noteworthy, since the President said that they had complied with the deficit negotiated with the IMF. But the truth is that if the nominal GDP is calculated, working from the Central Bank's figures for growth and inflation, a 2.3% of nominal GDP is equal to RD$44 billion and the deficit talks of RD$53 billion, which leaves doubts that need to be cleared up with regards to what the President said in his 27 February address.
Nevertheless, Fuentes does not think that this deficit implies that the IMF agreement will be revoked. The budget contemplated taking the deficit from RD$43.7 billion in 2010 to RD$33 billion in 2011, and this will probably require a further RD$20 billion more in adjustments this year, which will be stronger and more aggressive. For Henri Hebrard, the 2010 overdraft is not on the side of income, since the gap is minimal, because the collection missed by RD$900 million, which means that they nearly reached the goal of RD$57 billion in income.
More... (http://www.dr1.com/index.html#3)
According to economists Bernardo Fuentes, Henri Hebrard and Bernardo Vega, there is a fiscal blockage in the fifth review of the Stand-by arrangement with the IMF. According to Fuentes, this increase in the deficit is noteworthy, since the President said that they had complied with the deficit negotiated with the IMF. But the truth is that if the nominal GDP is calculated, working from the Central Bank's figures for growth and inflation, a 2.3% of nominal GDP is equal to RD$44 billion and the deficit talks of RD$53 billion, which leaves doubts that need to be cleared up with regards to what the President said in his 27 February address.
Nevertheless, Fuentes does not think that this deficit implies that the IMF agreement will be revoked. The budget contemplated taking the deficit from RD$43.7 billion in 2010 to RD$33 billion in 2011, and this will probably require a further RD$20 billion more in adjustments this year, which will be stronger and more aggressive. For Henri Hebrard, the 2010 overdraft is not on the side of income, since the gap is minimal, because the collection missed by RD$900 million, which means that they nearly reached the goal of RD$57 billion in income.
More... (http://www.dr1.com/index.html#3)