Forget the IMF

[NewsWhore]

Economy Minister Temistocles Montas says it is unlikely that the Dominican government will sign another agreement with the International Monetary Fund, according to Listin Diario. He said that President Leonel Fernandez would have the last word on any decision about a follow up arrangement with the IMF after the present Stand-by arrangement ends on 31 January 2008. Montas told Listin Diario journalists that the end of IMF involvement does not mean that there will be no controls on government spending. Montas admitted that the government is resorting to raising taxation to increase its resources. He said that the previous PRD government headed by Hipolito Mejia chose instead to increase the country's external debt using sovereign bonds. He argued that when Fernandez took office, social spending represented 7.1% of the government's expenditure, and in 2006 it was at 9.3%, which he said was proof that the government is spending more on education and health and other social services. He said that in 2004, the Ministry of Education had a budget of RD$12.7 billion, and today it is at RD$25 billion.

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