NewsWhore
03-18-2011, 05:40 PM
President Leonel Fernandez has announced a new plan to reduce government spending in response to rising fuel prices and the government's current fiscal deficit.
In his speech to the nation yesterday, President Fernandez said the government would cut spending by 12% as part of austerity measures in response to fuel price increases.
The ministries of public health and education will not be affected by the budget cut.
Prices of fuel have climbed 25% this year, exceeding the levels estimated as part of the stand-by arrangement with the International Monetary Fund.
Fernandez said that all ITBIS exemptions and Customs duties for government institutions would not apply for a period of one year. He said that government institutions would implement energy savings plans and announced a strengthening of government policies to support farmers. He said government markets where farmers could sell their goods directly to the public would increase to 800 nationwide.
The President ordered public buildings to implement 10% savings on energy consumption. He outlined plans for energy diagnostics and audits to help the industrial sector to become more efficient.
He also announced plans for converting at least 20,000 public transportation vehicles to natural gas, facilitating the installation of natural gas stations, urban and inter-urban public and cargo vehicles operating on alternate days, freezing the number of vehicles for urban and inter-urban transport and a Bonodiesel subsidy for six months to freeze passenger fares while the vehicles are converted to natural gas.
As reported in Diario Libre, the President said that the conversion project for public transportation vehicles would be phased in over six months, and would lead to an annual reduction of around US$25 million in the country's oil bill. At the same time the carriers would make an average saving of RD$8,466 a month in fuel costs, equivalent to sector-wide savings of RD$2.031 billion a year.
The President also announced that government procurement for public works and equipment would include energy efficiency requirements.
A new government unit, Energy Management, has been created to implement the energy savings programs.
More... (http://www.dr1.com/index.html#1)
In his speech to the nation yesterday, President Fernandez said the government would cut spending by 12% as part of austerity measures in response to fuel price increases.
The ministries of public health and education will not be affected by the budget cut.
Prices of fuel have climbed 25% this year, exceeding the levels estimated as part of the stand-by arrangement with the International Monetary Fund.
Fernandez said that all ITBIS exemptions and Customs duties for government institutions would not apply for a period of one year. He said that government institutions would implement energy savings plans and announced a strengthening of government policies to support farmers. He said government markets where farmers could sell their goods directly to the public would increase to 800 nationwide.
The President ordered public buildings to implement 10% savings on energy consumption. He outlined plans for energy diagnostics and audits to help the industrial sector to become more efficient.
He also announced plans for converting at least 20,000 public transportation vehicles to natural gas, facilitating the installation of natural gas stations, urban and inter-urban public and cargo vehicles operating on alternate days, freezing the number of vehicles for urban and inter-urban transport and a Bonodiesel subsidy for six months to freeze passenger fares while the vehicles are converted to natural gas.
As reported in Diario Libre, the President said that the conversion project for public transportation vehicles would be phased in over six months, and would lead to an annual reduction of around US$25 million in the country's oil bill. At the same time the carriers would make an average saving of RD$8,466 a month in fuel costs, equivalent to sector-wide savings of RD$2.031 billion a year.
The President also announced that government procurement for public works and equipment would include energy efficiency requirements.
A new government unit, Energy Management, has been created to implement the energy savings programs.
More... (http://www.dr1.com/index.html#1)