With the Senate approval of the tax reform legislation set to provide the government with around RD$46 billion in additional revenue to reduce the fiscal deficit attributed to political patronage and wasteful spending, an International Monetary Fund mission has arrived for talks with the government.
The tax bill now moves to be heard by the Chamber of Deputies, where the ruling PLD party also holds the majority. The government disputes the opinion of the PRD opposition party that two-thirds of the vote is necessary and insists that a simple majority is enough. The Chamber of Deputies is also expected to pass the bill.
The Constitutional Court, with judges chosen by the PLD-majority Congress, is said to be biased in favor of decisions by the ruling PLD party.
The government needs to pass the 2013 budget, now estimated at RD$469 billion. The business sector had asked the government to reduce its spending, so the increase in taxation need not happen now.
During this visit, it is expected that the IMF will close the previous IMF arrangement, at a standstill as a result of overspending by the PLD government during the election year, before establishing the basis for a new agreement to provide the Medina administration with new disbursements.
Diario Libre reports that the IMF officials who are visiting include Przemek Gajdeczak, Mario Dejesa and Letty Gutierrez.