Santo Domingo.- The government put the International Monetary Fund (IMF) abreast of Dominican Republic’s fiscal situation both on the figures which have hit the target and those where it has fallen short of the goal.
The IMF mission continues its busy agenda with talks with the public sector where until next Wednesday it also plans to meet with business leaders to discuss monetary, fiscal, and external issues as well as the energy area.
The IMF mission also held a first meeting yesterday with the technical team of the State-owned Electric Utility (CDEEE), led by its CEO Ruben Bichara,to inform it of the sector’s current situation and the prospects for year end and 2013.
The energy issue is considered critical in the visit, which is part of the mission’s normal revisions known as Article IV, referred to in the Agreement of the IMF for all its members.
The electrical problem, according to local economists, has greatly contributed to widening the government deficit, not just from the prices on world market, but also the controversial contracts and the system’s intricacies.
Along with other costs, the Government's fiscal deficit had reached RD $ 78.0 billion to July, according to unofficial sources.
As to the tax burden, authorities say it’s 13% of the GDP, who are preparing for talks to strike a deal to improve tax collection.