--> DR1 news reported that Fernandez plans a 2005 Budget of DR$180Billion.
--> Recent data show that DR presidents tend to spend roughly 10% more than they budget.
--> Therefore, 2005 actual spending should be nearly DR$200Billion.
--> In 2000, the government spent DR$53.7Billion.
--> Between 2000 and 2004, inflation + real GDP will have increased by 150%.
--> Inflation, as calculated by the Central Bank, appears to closely follow (at least on the upside) the exchange rate.
--> If inflation follows the exchange rate, and if we assume that the exchange rate will settle in the mid 30's next year, then 2005 inflation should really be a deflation of about 30%.
--> This means that accumulated inflation + GDP form the Year 2000 through the year 2005 should be +120%.
THEREFORE: the 2005 budget should be DR$118Billion. If Fernandez was as fiscally prudent as he was at the end of term, then his budget sould be DR$118Billion. Unless Fernandez uses accounting gimmicks, the 2005 federal government spending will be nearly 40% of the economy. Tha is beyond scandalous. Fernandez is spending DR$82Billion more than he should.
--> Recent data show that DR presidents tend to spend roughly 10% more than they budget.
--> Therefore, 2005 actual spending should be nearly DR$200Billion.
--> In 2000, the government spent DR$53.7Billion.
--> Between 2000 and 2004, inflation + real GDP will have increased by 150%.
--> Inflation, as calculated by the Central Bank, appears to closely follow (at least on the upside) the exchange rate.
--> If inflation follows the exchange rate, and if we assume that the exchange rate will settle in the mid 30's next year, then 2005 inflation should really be a deflation of about 30%.
--> This means that accumulated inflation + GDP form the Year 2000 through the year 2005 should be +120%.
THEREFORE: the 2005 budget should be DR$118Billion. If Fernandez was as fiscally prudent as he was at the end of term, then his budget sould be DR$118Billion. Unless Fernandez uses accounting gimmicks, the 2005 federal government spending will be nearly 40% of the economy. Tha is beyond scandalous. Fernandez is spending DR$82Billion more than he should.