Government expected to borrow US$1.5 billion to meet deficit
The Medina administration needs US$1.5 billion in addition to US$3.6 billion approved in the 2016 National Budget, says Miguel Collado Di Franco, senior economist at the Regional Center for Sustainable Economic Strategies (CREES). Collado says that the Medina administration executed 46% of the estimated deficit for 2016 in the first three months of the year.
Business organizations have been urging the government to cut wasteful spending to reduce the deficit. The president of the Association of Industries of Herrera and the Province of Santo Domingo (AEHI), Antonio Taveras Guzman called for a Bill for Responsibility and Fiscal Transparency to be passed, which will establish rules for limiting public spending and indebtedness.
On the other hand, in the 2016 general elections the government retained control of Congress, meaning it can push through an increase in taxes to maintain the current levels of spending.
Source: DR1, Eldia
May 31, 2016
Category: DR News |