Economist Rolando Reyes questioned whether the government has set aside
\nsufficient money in this year?s budget to pay the foreign debt. He said that
\nthere is ambiguity in the revenue estimates contained in the budget because the
\ninitial plan was to increase revenues by extending the application of the ITBIS
\ntax to more products. At the last minute, however, the government opted for a
\n30% increase in the Selective Tax on Consumption, viewing it as less politically
\ndamaging. The president of the Association of Appliance Distributors (Adimuel),
\nJuan Julio Brea, said that instead of receiving more tax revenues, the
\ngovernment would instead receive less, as consumers refrain from buying these
\nitems that already cost more because of the depreciation of the peso.
\nIn view of this, Reyes questions whether the government is counting on 100% of
\nthe exchange commission to meet its current expenditures. He mentions that of
\nthe 10% duty on exchange transactions, 3.75% is allotted to the government for
\nthe payment of the foreign debt, 1.75% is allotted to the Central Bank to cover
\nthat institution?s debt and the difference is meant to be allotted to the
\nCentral Bank to cover the so-called quasi-fiscal debt, or interest payments on
\ncertificates of deposit. Reyes told Hoy newspaper that the budgetary
\nstipulations will need to be clarified at the time of signing with the IMF. He
\nbelieves 2004?s budget will need to be reformulated in terms of estimated
\nrevenue.<\/p>\n","protected":false},"excerpt":{"rendered":"
Economist Rolando Reyes questioned whether the government has set aside sufficient money in this year?s budget to pay the foreign debt. He said that there is ambiguity in the revenue estimates contained in the budget because the initial plan was to increase revenues by extending the application of the ITBIS tax to more products. At … <\/p>\n