The Senate last night approved the RD$121.45 billion national budget for the
year 2004. The legislation goes next to the Chamber of Deputies for further
review. The final approval is expected to be given by 12 January, when the
present session of Congress comes to an end. Other items on the agenda last
night included the 30% Selective Consumer Tax and three loans that totaled
US$194 million, all of which were approved. The budget will be financed by
RD$108.96 billion to enter the treasury from regular, internal sources, such as
taxes, and RD$13.561 billion that will be derived from external sources.
Congress took an additional RD$346 million for itself, with RD$56 million
destined for the Senate. The Selective Consumer Tax, to be applied on cigarettes
and alcoholic beverages, will be based on the number of packages of cigarettes
imported or transferred by the manufacturer or importer. The new tax on alcohol
will follow generally accepted international guidelines and will be based on the
level of pure alcohol contained in each liter of product.
The international credits with foreign commercial banks are: US$131 million for
the construction of the Pinalito hydroelectric dam; US$45 million to purchase
asphaltic cement; US$18 million to purchase medical supplies for public
hospitals.