2005News

Stalemate pushes Fernandez to send two budgets

Facing the real possibility of a congressional stalemate on the tax reform proposals, the President will send two budget proposals to Congress. The 2006 budget proposals will include the tax reform plan on the one hand and a different budget if the tax plan is stalled or defeated as it stands. The President’s Minister for Technical Affairs, Temistocles Montas told reporters that the idea of two budget proposals came up during a meeting with the IMF team that is currently visiting the country as part of the review process. Montas told the reporters that the two budgets are easily identified: one has the tax reform proposals and the other does not. In fact, the second proposal will maintain the exchange commission tax. In such case, there will be serious implications facing the Dominican entry into the DR-CAFTA agreement, which is scheduled to begin in January 2006. He emphasized the fact that the legislators, upon seeing the twin proposals, will note that the government’s income would be the same in either case.