The National Development Council (CND) has approved the RD$120.93 billion 2004 National Budget, which represents increased spending of nearly RD$38 billion over the budget for 2003. El Caribe’s economic section dissects the financial plan and finds that debt payments will absorb 32% of the projected total, or RD$39 billion. This is a 52% increase over what was paid out similarly last year. Of the RD$39 billion, RD$24.11 billion will service the capital portion and RD$15.02 will go to pay interest. According to Daniel Garcia, the El Caribe reporter, the “pie” also has a big slice for the government’s payroll. RD$30.288 billion has been assigned to public salaries in the coming year, for an increase of RD$4.25 billion over 2003’s payroll. According to Garcia’s analysis, the two large expenditures will tie the government’s hands as far as public works goes. Only RD$14.6 billion will be available for projects, for a reduction of 14.4% over 2003. After its approval by the CND, the budget, which was prepared with assistance of the experts from the IMF, will be forwarded to Congress for final approval. According to Garcia, if the government’s projections are correct, consumers will get a little respite next year, with inflation pegged at 14% and an exchange rate contained at RD$35 to US$1 for the year. Even so, this exchange rate represents more than a 100% peso devaluation compared to just two years ago. A net loss of 1.3% in the GDP is also predicted.