NewsWhore
08-24-2012, 02:00 PM
Economist Vladimir Pimentel said yesterday, Thursday 23 August, that President Danilo Medina's decision to implement austerity measures and put the brakes on the construction of public works for the rest of the year hints at the gravity of the economic situation facing the country.
However, he said that the population is unaware of the true state of public finances, which according to many economic analysts will lead to a debt of more than RD$100 billion, double the average of the last few years, at the end of 2012.
He said that all the talk about saving had led people to assume that public finances were in a healthy condition and that a reduction in government spending would release resources for new projects, but that was not the case. He said that the measures proposed by Medina would enable the government to finish 2012 by only maintaining the basic activities of the state.
He went on to say that in the last part of 2012 the usual pattern of public works financed by public expenditure in the typical Fernandez Keynesian style, will be seen to abate.
www.hoy.com.do/economia/2012/8/23/442891/Economista-afirma-medidas-de-austeridad-del-presidente-Danilo-Medina (http://www.hoy.com.do/economia/2012/8/23/442891/Economista-afirma-medidas-de-austeridad-del-presidente-Danilo-Medina)
More... (http://www.dr1.com/index.html#9)
However, he said that the population is unaware of the true state of public finances, which according to many economic analysts will lead to a debt of more than RD$100 billion, double the average of the last few years, at the end of 2012.
He said that all the talk about saving had led people to assume that public finances were in a healthy condition and that a reduction in government spending would release resources for new projects, but that was not the case. He said that the measures proposed by Medina would enable the government to finish 2012 by only maintaining the basic activities of the state.
He went on to say that in the last part of 2012 the usual pattern of public works financed by public expenditure in the typical Fernandez Keynesian style, will be seen to abate.
www.hoy.com.do/economia/2012/8/23/442891/Economista-afirma-medidas-de-austeridad-del-presidente-Danilo-Medina (http://www.hoy.com.do/economia/2012/8/23/442891/Economista-afirma-medidas-de-austeridad-del-presidente-Danilo-Medina)
More... (http://www.dr1.com/index.html#9)