Rafael Camilo, director of the National Planning Office, said that the new authorities need to confront the decline in resources due to the climbing petroleum prices. The "tax" on the difference between the cost of petroleum and the price it is sold for locally is one of the main sources of government revenue. Camilo explains petroleum tax revenues have significantly dropped this year. They have gone from RD$2,000 million for January-May in 1999, to RD$700 million for the same period in 2000. President-elect Hipólito Mejia said that the times call for sacrifices from all. He said he will cut 40% off his salary and that of other cabinet members as part of the austerity program the government will implement as of August. The plan is to be able to be able to hire more low-ranking government employees and improve the salaries of these. He said government will subsidize the lower income sectors of the country. Economist Andres Dauhajre says in El Siglo newspaper that the government is being affected by the rising interest rates, primarily those in the United States, where rates have increased three points in the past seven months. He forecasts the interest rates will continue to increase, affecting the foreign debt payments.
