Passed RD$71.0B Budget boost shocks young business leaders
DominicanToday.com - The approval of the supplementary budget has shocked the young business leaders grouped in ANJE, which yesterday requested the repeal of the measure passed by the Senate, since in its view would complicate the country's fiscal situation and hinder the new administration’s negotiations with international organizations.

 

ANJE president Manuel Cabral and other executives said there’s a real concern the supplementary budget passed by the Senate will skyrocket government spending by RD$71.0 billion and increase the GDP deficit from 1% to 5%.

Cabral said the measure caught public opinion by surprise and could bring unfavorable consequences for the Dominican economy.

In an interviewed by hoy.com.do, the ANJE leaders called the legislators’ approval of the piece “without first debating it, "irresponsibility.”

He added that under the bill’s provisions, the fiscal deficit would surpass RD $100.0 billion, taking into account government revenue of around RD$20 billion below what was budgeted.

 

Senate approves bonds and budget

DR1.com - The Senate declared the legislation urgent and approved the Complementary Budget proposal in two readings yesterday, Wednesday 11 July. The complementary budget is designed to meet the fiscal deficit the government ran up during the months leading to the 20 May presidential election.

This proposal modifies the expenditures of the current fiscal year by RD$71.5 billion. The Senate also authorized the Ministry of Hacienda to issue bonds for US$500 million to subsidize the electricity sector. These proposals will be heard in today's session of the Chamber of Deputies, where they are expected to be approved urgently.

Once the obstacles were overcome, with the elimination of the US$1.6 billion in loans and the modification of article seven, the senators accepted a report by a joint commission that recommended the approval of the legislation with an addendum sent by the Executive Branch. The modification of article seven limits the funds from foreign sources that the institutions can use in advance and charge to the Banco de Reservas to 1% of the total of the General Budget.

Senators Tommy Galan, Felix Nova and Jose Rafael Vargas did not sign the reports, which together with the projects were accepted by 24 votes. Galan did not vote for the bonds and Nova and Vargas did not attend the session and sent apologies. Senators Manuel Paula, Eddy Mateo, Juan Orlando Mercedes and Jose Maria Sosa questioned the elimination of the US$1.6 billion in loans for infrastructure projects from the proposal.

Senate president Reinaldo Pared Perez admonished the senators and said that including those loans was unconstitutional and a violation of the Budget Law, because it constituted a new budget. He reminded them that they were elected on the PLD ticket and that if they had stood for election independently none of them would have been elected.

 

 

Dominican Watchdog Note | There is absolutely nothing shocking about that, in order for the government officials to keep sucking money out from public works and contracts, the budget for such activities has to be increased, its that simple! That's the only way corruption can keep fueling the Dominican economy with great chances of future default on international loans!!! The quote below fits perfectly to the Dominican Republic.

"When you see that trading is done, not by consent, but by compulsion - when you see that in order to produce, you need to obtain permission from men who produce nothing - when you see that money is flowing to those who deal, not in goods, but in favors - when you see that men get richer by graft and by pull than by work, and your laws don't protect you against them, but protect them against you - when you see corruption being rewarded and honesty becoming a self-sacrifice - you may understand that this country is doomed."

Go back | Date: 13 Jul 2012
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