PRD says this year will close with budget deficit of more than RD$ 55 billion

The Commission economic of the party Revolucionario Dominicano (PRD) said that this year the budget deficit will close with 55 thousand 986 million dollars, almost double the 33 billion that was put as a top in the agreement with the International Monetary Fund (IMF).

Arturo Martínez Moya, head of the Economic Commission, said that the deficit will exceed the 50 billion pesos, for four consecutive years to accumulate an imbalance in the public accounts of 220 thousand 400 million pesos in the period 2008-2011

Said 37 percent of government revenue was allocated to the payment of public debt and 11% to subsidize the Dominican Corporation of State electric companies (CDEEE).

"Total expenditure that the Government will no longer receive for breaching the agreement amounts to 510.9 million dollars, of which only $ 128 million are for budget agreement and the remainder to increase the reserves of the" u000a"Central Bank" said.

Said it was best to discontinue the agreement with the IMF because it was more profitable politically and financially to the Government that pay the political cost of adjustments to undertook.

Said that without the commitment with the IMF the Government won't have to meet payments to the Central Bank or to update with generators of electricity by arrears of more than 45 days, "will freeze electric rates and the prices of fuel, increasing the debt with Refidomsa and borrow unlimited with local, especially with the Banco de Reservas banks much more increasing the budget deficit".

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