NewsWhore
06-07-2011, 03:10 PM
While government revenues have increased by 326% over the past 10 years, government spending has been faster, and is 428% greater, says a report in today's El Caribe. Economic reporter Hector Linares says that there has been a "race" where government spending has outpaced revenue collections. Furthermore, government borrowing has climbed to record levels, and has reached upward limits.
El Caribe recalls that three major fiscal reforms and two minor reforms have been applied since 2000. Now the government wants another reform to increase its revenues to RD$9.5 billion and prevent an increase in the fiscal deficit.
In 2000, a first tax was levied on fuels by means of Law 112-00. These taxes were increased in the 2004 and 2006 taxation reforms.
In 2001, the government passed a major Tax Law, and increased the sales tax from 8 to 12%, plus ordered more goods to be taxable. Then government revenues were RD$59.85 billion, and spending was RD$58.86 billion.
The second major taxation was levied in 2004, when the sales tax was increased from 12 to 16%, real estate was taxed as of RD$5 million, and new categories were brought under the sales tax.
Another modification took place in 2005, and the authorities expected to collect an additional RD$24.35 billion.
Government revenues have increased from RD$59.85 billion in 2001 to RD$255.08 billion in 2010, up 326%. But spending increased 428%, going from RD$58.86 billion to RD$310.84 billion last year. The government has a fiscal deficit of more than RD$55 billion, as reported in El Caribe.
More... (http://www.dr1.com/index.html#3)
El Caribe recalls that three major fiscal reforms and two minor reforms have been applied since 2000. Now the government wants another reform to increase its revenues to RD$9.5 billion and prevent an increase in the fiscal deficit.
In 2000, a first tax was levied on fuels by means of Law 112-00. These taxes were increased in the 2004 and 2006 taxation reforms.
In 2001, the government passed a major Tax Law, and increased the sales tax from 8 to 12%, plus ordered more goods to be taxable. Then government revenues were RD$59.85 billion, and spending was RD$58.86 billion.
The second major taxation was levied in 2004, when the sales tax was increased from 12 to 16%, real estate was taxed as of RD$5 million, and new categories were brought under the sales tax.
Another modification took place in 2005, and the authorities expected to collect an additional RD$24.35 billion.
Government revenues have increased from RD$59.85 billion in 2001 to RD$255.08 billion in 2010, up 326%. But spending increased 428%, going from RD$58.86 billion to RD$310.84 billion last year. The government has a fiscal deficit of more than RD$55 billion, as reported in El Caribe.
More... (http://www.dr1.com/index.html#3)