El Caribe reports that government income was 22.9% more in the first trimester of this year compared to the same period in 2000. However, the government had hoped for a 29.6% increase in revenues, as established in the 2001 National Budget. To cover the deficit, the government borrowed RD$800 million from private banks to be repaid later this year. El Caribe points out that one of the complaints is that the new funds went to meet increased payroll expenditures after the government hired thousands of party members who helped bring the PRD back to power after 14 years. The government implemented new taxes in January, such as a 1.5% tax on monthly gross income for companies making more than RD$6 million in sales a year, an increase in the ITBIS from 8 to 12%, an increase in the petroleum tax and other tax hikes. But a slowdown in the economy resulted in a slowdown in tax payments. El Caribe reports that the inflation rate of the past 12 months was 9.58%. Forecasts are that inflation this year will be the highest in five years.<\/p>\n","protected":false},"excerpt":{"rendered":"
El Caribe reports that government income was 22.9% more in the first trimester of this year compared to the same period in 2000. However, the government had hoped for a 29.6% increase in revenues, as established in the 2001 National Budget. To cover the deficit, the government borrowed RD$800 million from private banks to be … <\/p>\n