The International Monetary Fund warned the Dominican Republic that if it continues to spend without having funds on hand, it could jeopardize its fiscal stability, reports the List?n Diario.
\nOscar Melhado, an economist for the IMF, said that public finances should be administered with caution to maintain stability. He said that based on the present spending trends of the different government departments, the debt indicators would worsen in the medium range, unless external factors improved significantly. Melhado concluded his report by saying that the fiscal position of the country seems to be sustainable, but that if ?expenditures continue to rise in relation to the gross domestic product, without any fiscal adjustments, the indicators of sustainability will begin to deteriorate.?
\nReactions to these comments were not long in coming. Juan Hernandez, the former head of the Internal Revenue Department (DGII), and businessman Jos? Antonio Najri voiced strong objections to the suggestions of Melhado, particularly to the increase of the ITBIS from 12% to 15% and the extension of the unpopular 1.5% advance tax on gross sales. A former PRD senator for Santo Domingo, Jos? Antonio Najri called the proposals a ?crime? and a threat to business stability.<\/p>\n","protected":false},"excerpt":{"rendered":"
The International Monetary Fund warned the Dominican Republic that if it continues to spend without having funds on hand, it could jeopardize its fiscal stability, reports the List?n Diario. Oscar Melhado, an economist for the IMF, said that public finances should be administered with caution to maintain stability. He said that based on the present … <\/p>\n