El Caribe newspaper reports that the government had estimated tax revenues of RD$61,710 million in its 2001 National Budget. This was 29.6% more than taxes collected in 2000, which reached RD$47,598 million. Nevertheless, the first two months show that the taxes are falling short, increasing only 27.3%, or RD$157 million less in the first two months than what was estimated. The government was counting on revenues to go up as a result of the increase in the ITBIS (value-added tax) from 8 to 12%, the new 1.5% tax on gross sales, the increase in the petroleum differential tax and an increase in the tax on luxury items. The money has not been coming in as planned. El Caribe newspaper says that the government had to borrow RD$800 million from local commercial banks in the first two months of the year to meet payments due on the national foreign debt. This loan needs to be repaid this year. Furthermore, the newspaper report shows concern for what it calls a lack of control over current expenditures, especially for the increases in the payroll after the government has honored political commitments by hiring thousands of PRD party members, and the tendency to borrow from commercial banks at high interest rates and with non-favorable conditions.
