. Fiscal crisis looming
The Economic Committee of the Modern Revolutionary Party (PRM) has warned that the payments of the public debt are draining the budget. Servicing the public debt is consuming half of the funds available for expenditures and investments in public works.
At a press conference, committee director, Arturo Martinez Moya, noted that the government of President Danilo Medina had received more than RD$31.44 billion more in loans as of 30 June 2015, the result of RD$206.94 billion in loans when Congress authorized RD$175.5 billion. Also present at the press conference were presidential candidate, Luis Abinader and former President Hipolito Mejia.
Martinez Moya said that the ever-increasing reliance on the National Budget to make payments on internal and external loans was reaching dangerous levels and was eroding the fiscal stability of the country, as well as violating the law. He warned that if this spending goes unchecked, the country would experience a deterioration of the public institutions and public services.
He said that for next year, the government should reduce its dependency on new debt and eliminate the fiscal deficit. If the public debt continues to rise, it would create a precarious situation for public finance and begin to diminish the public's trust in government as citizens begin to realize that a high percent of their taxes are being used to service loans related to out of control government spending.
PRM economists pointed out that accor
The Economic Committee of the Modern Revolutionary Party (PRM) has warned that the payments of the public debt are draining the budget. Servicing the public debt is consuming half of the funds available for expenditures and investments in public works.
At a press conference, committee director, Arturo Martinez Moya, noted that the government of President Danilo Medina had received more than RD$31.44 billion more in loans as of 30 June 2015, the result of RD$206.94 billion in loans when Congress authorized RD$175.5 billion. Also present at the press conference were presidential candidate, Luis Abinader and former President Hipolito Mejia.
Martinez Moya said that the ever-increasing reliance on the National Budget to make payments on internal and external loans was reaching dangerous levels and was eroding the fiscal stability of the country, as well as violating the law. He warned that if this spending goes unchecked, the country would experience a deterioration of the public institutions and public services.
He said that for next year, the government should reduce its dependency on new debt and eliminate the fiscal deficit. If the public debt continues to rise, it would create a precarious situation for public finance and begin to diminish the public's trust in government as citizens begin to realize that a high percent of their taxes are being used to service loans related to out of control government spending.
PRM economists pointed out that accor