Tax collections down, government spending up, international reserves at a right level

Dolores

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According to the Central Bank, government tax collections were down 14% and government spending is up 24% for the first half of the year. The statistics reflect the unexpected spending for Covid-19 and the change of administrations. The Central Bank reports that revenues are 7.5% below the estimates included in the supplementary budget passed to compensate for dwindling revenues.



The Central Bank reports that central government operations register a net debt of RD$136.8 billion, or 3% of the Gross Domestic Product (GDP) estimated for 2020.



The good news, though, is that the monetary authorities have been able to keep international reserves at adequate levels despite the collapse of the tourism industry, the country’s most important source of hard currency. The gross international reserves reached US$7.17 billion, a level that as a proportion of the Gross Domestic...

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Last edited by a moderator:
Jan 9, 2004
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The data contained herein, like some packaged foods is well beyond its "use by" date, that it is stale and hardly qualifies to be in the Daily Headline News.

The data is from the Banco Central for the period ending in June, then reported in El Dinero August 30th and now published here in late September.

And part of the headline here "international reserves at a right level" is not what El Dinero said. They indicated for June the international reserves "is close to that considered optimal."

Of course that was June and since that time according to the Banco Central, reserves have slipped further. www.bancentral.gov.do

Here is a better picture of the trend for those international reserves with newer data;

https://tradingeconomics.com/dominican-republic/foreign-exchange-reserves#:~:text=Foreign Exchange Reserves in Dominican Republic averaged 2142.80 USD Million,Million in October of 1990.

The economic picture in the DR and consequently the peso, at least in the near term, are in for a difficult period.


Respectfully,
Playacaribe2
 

Caonabo

LIFE IS GOOD
Sep 27, 2017
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The data contained herein, like some packaged foods is well beyond its "use by" date, that it is stale and hardly qualifies to be in the Daily Headline News.

The data is from the Banco Central for the period ending in June, then reported in El Dinero August 30th and now published here in late September.

And part of the headline here "international reserves at a right level" is not what El Dinero said. They indicated for June the international reserves "is close to that considered optimal."

Of course that was June and since that time according to the Banco Central, reserves have slipped further. www.bancentral.gov.do

Here is a better picture of the trend for those international reserves with newer data;

https://tradingeconomics.com/dominican-republic/foreign-exchange-reserves#:~:text=Foreign Exchange Reserves in Dominican Republic averaged 2142.80 USD Million,Million in October of 1990.

The economic picture in the DR and consequently the peso, at least in the near term, are in for a difficult period.


Respectfully,
Playacaribe2

As may be the case, but many of us think long term, not solely near term.
We will weather this storm, regardless of what some wish to impose upon us.
 
Jan 9, 2004
9,166
504
113
As may be the case, but many of us think long term, not solely near term.
We will weather this storm, regardless of what some wish to impose upon us.

Thinking long term and planning accordingly is also wise;


Click Max for the long term view.............

Paraphrasing Sir Isaac Newton..........An object in motion tends to remain in motion..........


Respectfully,
Playacaribe2
 
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Caonabo

LIFE IS GOOD
Sep 27, 2017
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I think it would be agreed that we did not ask for these complications at hand right now.
We will have to adapt and adjust.
We will.
 
Jan 9, 2004
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And just like magic or sleight of hand if you prefer................international reserves are now up 3.8 billion........giving the DR breathing room to pay its external debts. Of course that is the equivalent amount of the bonds they just placed, otherwise known as new debt/borrowing;


And that debt, combined with the first Trillion budget in DR history, pushes debt to gdp to very unsafe levels approaching 60%.


And as most know, debt is not the real problem.............rather it is the inability to pay that debt back............and that is the path the economy is now on..........unless and until the economy led by tourism and its ability to generate hard currency............returns in earnest................soon.

And that is not likely, for at least another year..................


Respectfully,
Playacaribe2