Advertising spree

[NewsWhore]

Government spending in propaganda increased 58% during the first five months of the year, compared to 2005, in violation of Law 497-05 on austerity in the public sector, as reported in Clave Digital weekly newspaper. President Leonel Fernandez sent the bill to Congress together with the tax increase act and these were approved together at the end of 2006 for implementation in January 2007. The government had committed to reduce its spending RD$17.5 billion, while proposing to increase taxes for RD$17.5 billion. The law specifically established in its Art. 12 that during 2007 government spending in advertising would be reduced 25%, taking the spending level of 2005 as reference. Budget office figures indicate that the government spent RD$864.1 million in advertising, compared to RD$546.5 million in 2005, a 58% increase contrary to the 25% reduction established in the law. The increase in advertising coincided with the ruling party's presidential primary. In May alone, the government spent RD$332.2 million in advertising.
Rolando Reyes, deputy manager of the Central Bank explains that the bonanza enjoyed by the government comes from the successful application of the new NCF cross check invoicing system, windfall revenues from the high ferronickel and the sale of Verizon.

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