The Executive Branch has announced it will send Congress a budget that entails a record 71% increase over the previous year’s amount. Despite the appreciation of the peso on exchange markets, which reduces government expenses, as well as expectations for reduced inflation and presidential announcements of government austerity, the authorities chose to budget RD$207 billion of expenditures for 2005. This compares to RD$121 billion in the 2004 budget, for which a rate of RD$40 to US$1 was taken into account and an expected inflation of 40% was factored in.
The Executive Branch is expected to present Congress a budget for RD$206.76 billion today. Technical Minister of the Presidency Temistocles Montas presented the financial plan yesterday to the National Development Council that met at the Presidential Palace. He forecast economic growth of 2.5%, and inflation of 13.5% in 2005.
Of the total amount budgeted, most of the revenues are expected to be drived from import taxes (RD$53.6 billion), income taxes (RD$74.5 billion), and the National Treasury (RD$23.6 billion). The government expects RD$44.3 billion in external revenues.
As reported in El Caribe newspaper, the president of the Chamber of Deputies Alfredo Pacheco said that the government had reached a consensus with Congress to pass the bill with only minimal changes, if any.