In 2007 the Congress, the judicial authorities, the municipalities and most government ministers will receive more or less the same budget in 2007 as they did in 2006. The only departments due to receive more money will be Education, Health, and Science and Technology. The Attorney General's office will get an increase of RD$300 million, but that is because they will take on the new responsibility for feeding prisoners in the country's jails in 2007. The total budget for 2007 will be for a total of RD$254 billion. Technical Secretary to the Presidency Temistocles Montas said that expected revenues for 2007 would be RD$212, 610 billion. This includes the RD$17,500 billion collected from the fiscal reform. Montas said that due to agreements with the IMF there will be a surplus of RD$29,135 million, or 2.5% of the GDP. He also explained that RD$19 billion of the budget would go towards the payment of interest rates, RD$5,827 billion for funds that will be transferred for the capitalization of the Central Bank, and RD$65 billion towards payment of the external debt. The subsidy for the energy sector will be for RD$400 million, while there will be an RD$2,784 billion subsidy for energy consumption for institutions that can't have their energy cut off. This represents an increase of RD$1,111 million. Social programs will help an additional 300,000 people through the Solidarity Program and 800,000 more people from disadvantaged backgrounds in the Social Security program. For 2007 there will an expected 4.73% deficit as well as an expected 6% growth in GDP.
As from January 1st businesses that don't have their NCF (DGII billing numbers) will not be able to give out an invoice for any business transactions. Tax Department (DGII) head Juan Hernandez, speaking in Diario Libre, reminded the public that businesses that don't have the NCF would be fined RD$30,000 and could be shut down. Hernandez warned that the DGII would not be flexible with the process. Hernandez explained that with the deadline coming up on 15 December, 90% of businesses have registered and received their NCF numbers that will be printed on each invoice. The reason for the new system is, according to Hernandez, a way to reduce the amount of tax evasion cases, which the DGII hopes to reduce by 5% next year.
President Leonel Fernandez has inaugurated the Presidential Gallery and the Government's Cabinet Office at the National Palace, with a total cost of RD$9,246 million. The gallery includes portraits of Dominicans who have led the country either on provisional, temporary or constitutional basis. Leaders, who held office in periods where the country lost its sovereignty, like the annexation to Spain and during the American invasion of 1916 for example, were removed from the display. The Presidential gallery ends at the Government's Cabinet Office, which includes pictures of Antonio Guzman, Salvador Jorge Blanco, Joaquin Balaguer, Hipolito Mejia and Leonel Fernandez. The hall also has two video conferencing screens, microphones, laptop connections, and other software.
Finance Minister Vicente Bengoa has responded to criticism from the business sector by saying that the sector is only in favor of reforms when taxes are taken away from them. Bengoa said that there would be no new taxes for the free trade zones or the tourist sector as a way of maintaining their competitive advantages as the country enters DR-CAFTA. Bengoa is responding to concerns and misunderstandings about the issue, which have caused a firestorm when it appeared that the government was to remove the exemptions. Bengoa, speaking in Hoy newspaper, said that if you read the proposed reform it doesn't say that exemptions will be removed but that new FTZs will not be allowed those exemptions. Bengoa says that the exemptions could not continue because they go against DR-CAFTA requirements. He added that if the DR-CAFTA signatory countries engage in an incentive war for FTZs it would damage the foundation of the free trade agreement. Furthermore, Bengoa challenged the business sector to show how the fiscal reform would actually affect business and said that in turn it is the consumer who will be affected.
Vice President Rafael Alburquerque chimed in by saying that he would need proof of the assertion that the government is collecting RD$7.5 billion more than was proposed with the fiscal reform. Alburquerque said that the government will strongly consider retaining the incentives for the FTZs but did warn however that because of that the government might not be able to collect the total RD$17.5 billion they need for 2007.
Senate leader Reinaldo Pared Perez commented that the fiscal reform is the only way to maintain the country's macro-economic stability and that the reform would still go through even if some of the country's sectors aren't in agreement with it. Pared Perez, speaking in Diario Libre, said that he prefers businesses to be taxed rather than the public.
The vehicular and casino sectors are also expressing opinions on the issue. Luis Manuel Mejia, representing the National Association of Vehicle Importers (ANADIVE) oppose the reform. Edmond Elias, speaking for the Association of Casinos, said that five casinos, the San Geronimo, Naco, Playa Dorada, D'Cameron and Napolitano have all closed down due to taxes. He continued by saying that if this continues, the government will not be able to collect the necessary funds, and that this in turn would damage the tourist sector. Tourism Minister Felix Jimenez said that he has given President Leonel Fernandez a proposal for the modification of law 158, on incentives that favor all-inclusive tourist vacations. The modification would favor potential tourist destinations, as opposed to areas that are already tourist destinations.
At the close of last year the Central Bank's net deficit was RD$23.9 billion, due in large part to an increase in its liabilities that surged from RD$245.4 billion in 2004 to RD$311.6 billion last year. These figures are part of the findings of an audit conducted by the accounting firm Price Waterhouse Cooper. During the previous year the Central Bank had revenues of RD$6.3 billion, as a result of interest from deposits outside the country, and domestically through commissions and bonds from the capitalization transferred by the government. The Central Bank's net spending was RD$32 billion, most of which (RD$28 billion) was directed towards the payment of interests on remunerated deposits and operations in the open market. The Central Bank increased its spending on salary payments by 25%, from RD$1.18 billion in 2004 to RD$1.47 billion in 2005. In order to be in line with monetary law the Central Bank must transfer the total amount of its deficit to the Central Government. On 31 December 2005 this would have totaled RD$202 billion.
Diario Libre reports that of the 18 savings and loans associations in the country, only five comply with the Banking Superintendence's regulations. This is according to an evaluation by the Banking Superintendence, carried out with support from the International Monetary Fund (IMF). Although the document was supposed to be confidential because of some anomalies in the process, details have been leaked. Only one association, the Central Association for Savings and Loans, has been "intervened" by the superintendence. Diario Libre writes that many of these associations function more like cooperatives or credit unions, and that this puts the public's savings in jeopardy. Pension fund money is involved in this case. In the DR, all pension plan savings are deposited in local banks.
The Central Electoral Board (JCE) is asking the executive branch for the disbursal of an extra RD$245 million in order to deal with the deficit at the JCE. The JCE is asking for the money because according to them they have a monthly deficit of RD$22 million and that the disorganization in the payroll and current costs are pushing the JCE towards economic collapse. Robert Rosario, president of the Administrative Chamber, says that the money needs to be handed out as soon as possible and should be independent of the budget assigned to the entity by the national budget. The JCE has an RD$76 million budget although they spend RD$98.6 million, for an RD$22 million monthly budget. Diario Libre reports that the water supply to the JCE central offices was recently cut and that current JCE officials are trying to make deals so that power and telephones don't get disconnected as well. Presidency Technical Secretary Temistocles Montas said that the JCE would not receive the same budget for 2007 as it did in 2006, but failed to clarify whether the JCE will receive in increase in funds, as current law requires.
Details in the DatoCentro case are slowly surfacing, including the revelation that the company that was supposed to automate the Central Electoral Board (JCE) no longer exists. What is even more compelling is that former company executives are refusing to cooperate in the investigation, leading authorities on a goose chase to find all the guilty parties involved. DataCentro was contracted in 1997 to automate the government offices, design the new "cedula" identification cards, and digitize fingerprinting, but the new JCE says that the company defaulted on its contract and did not complete its job. The contract was for a total of US$18.2 million, and DataCentro is claiming that it is still owed US$1.8 million. Diario Libre reports that former DataCentro vice president Domingo Russo Pla is washing his hands off the whole deal and said that if any information is needed they should contact Carlos and Oscar Lama Seliman, who are currently in Miami, Florida. A spokesperson for Russo said that DataCentro had gone bankrupt, it wasn't his fault, and that Carlos and Oscar Lama are the ones who should be contacted. The case has been submitted to the Corruption Prevention Department (Depreco) for investigation.
Opposition party PRD member Ramon Alburquerque is warning his party's legislators that if they vote in favor of the announced fiscal reform they will be immediately removed from the party. This decision was made unanimously by the party leadership, and comes only days after PLD member and Interior and Police Minister Franklyn Almeyda announced that any PLD member who votes against the motion would be severely sanctioned by the party. Alburquerque is quoted as saying that it's been demonstrated that the reform is not necessary, that the government doesn't need to carry this out, and that it will mostly affect the middle and lower classes and the production sector. Robert Rodriguez, spokesman for the PRD senators said that the PRD legislators would be supporting the party's position.
The Hamilton Beattie & Staff poll contracted by Listin Diario reveals that First Lady Margarita Cedeno has the highest favorable rating among Dominican public figures. She received a 71% favorable rate with only a 27% unfavorable vote, followed by Cardinal Nicolas Lopez Rodriguez (65%), Pedro de Jesus Candelier (63%), Jose Tomas Perez (63%), Jaime David Fernandez (55%), Eduardo Estrella (54%), Leonel Fernandez (54%) and Amable Aristy Castro (50%).
Retired General Pedro de Jesus Candelier and former Presidential Minister Danilo Medina have both announced that they plan to run for President in 2008. Candelier criticized recent polls, claiming that they are trying to exclude him from the electoral process by only presenting the major parties as political options. Candelier has now asked for the Central Electoral Board (JCE) to officially recognize his party, the Popular Alliance. Medina on the other hand has officially thrown his hat into the ring and says that the country needs new models in order to build a more just Dominican Republic. Medina recently resigned from his senior government post to "reflect" on his possible campaign.
An anti re-election petition from Deputy Luis Jose Gonzalez Sanchez (PRSC) has been doing the rounds at Congress and is receiving support from other deputies, according to Diario Libre. The petition has 40 signatures of the 60 total needed to present a formal project aimed at reforming the Dominican constitution and prohibiting Presidential re-election. Although the project has not been finalized and is only in its draft stages, it seeks to extend Presidential terms from four to five years. It also includes a clause for a referendum that would be held six months before the election, during which the public would vote for or against the President's re-election bid. The project would include another clause that states that if the President were to run for re-election the incumbent would have to leave the post 90 days before the elections, in order to run the re-election campaign. If the Vice President decides to help the President in the re-election campaign, the VP too would leave the post and the president of the Supreme Court would assume temporary Presidential powers. Of the 40 signatures, 21 are from PRD members, 15 from PRSC members, and 4 from PLD members.
The Department of Drug Control (DNCD) has intercepted a drug shipment with a total weight of 235.5 kilos. The drugs were found on a farm in Sabana de la Mar and belong to low-ranking army officer from Miches, who was apprehended with three Haitian nationals and two other Dominicans. The drugs were being transported in 12 sacks, on a pick up truck, and were concealed among food items. The cocaine was packed in 212 packages. The accused are Jose Hernandez, Juan Marquez Ustantel Salomon, Luinet Querido and Jean Linel Francois. The raid was carried out jointly with the US Drug Enforcement Agency (DEA).
The sextuplets born to Maxima Perez and Emilio Figueroa will be one year old on 26 December. The siblings were at the Plaza de la Salud Hospital yesterday for a check up accompanied by a group of neighbors who helped transport the family to the hospital. Hospital manager Julio Amado Castanos said that the Plaza de la Salud would continue to support the babies.
The baseball season marches on and the road to the playoffs is on the horizon. The Gigantes refuse to give away an inch in the Winter League standings as they beat Licey last night 5-3. The Gigantes hold a tight grip on first and they are now 4.5 games ahead of third place Licey. The Aguilas are still in the hunt as they kept their claws on second place after a 6-3 victory over the Estrellas. The Aguilas are now 1.5 games behind the Gigantes, and things look to stay that way through the end of the regular season, barring a late season collapse by the Gigantes. In the battle for last place, the lowly Toros beat up on the Escogido 8-2. Though both cellar dwellers are more than 10.5 games behind the lead, they are only a few games behind for the fourth and final spot in the round robin playoff series, so things could get interesting in the next weeks.
Standings
| Team | W-L | Avg. | Games Behind |
| Gigantes | 29 - 14 | .674 | -- |
| Aguilas | 27 - 15 | .643 | 1.5 |
| Licey | 25 - 18 | .581 | 4.0 |
| Estrellas | 18 - 24 | .429 | 10.5 |
| Azucareros | 15 - 28 | .349 | -- |
| Escogido | 14 - 29 | .326 | -- |
* Estadio Tetelo Vargas 7:30
Aguilas vs. Estrellas
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