List of References
Dauharje, Andrés, hijo, Jaime Aristy Escuder, et al., 1996, El Programa: Programa Macroeconómico de Mediano Plazo para la República Dominicana: 1996–2000, (Santo Domingo).
Lizardo, Magdalena and Rolando Guzmán, 1999, “La Reforma Arancelaria: Elementos para su Rationalization,” Oficina Nacional de Planificación, Working Paper.
Oficina National de Planificación, 1998, “La Economía Dominicana: Comportamiento Reciente y Perspectivas de Mediano Plazo,” (unpublished).
This chapter was prepared by David Dunn.
The Banco de Reservas maintains roughly a 100 percent reserve on government deposits in the BCRD. Financing from this bank is equivalent to an expansion of net credit to the nonfinancial public sector by the central bank.
See Chapter 1, “Stabilization and Structural Reforms.”
The outturn of the 1994 presidential election was disputed, which contributed to a major capital outflow and loss in official reserves. The main political parties resolved the issue by declaring then President Balaguer the winner for a shortened 2-year term. The constitution was also amended to disallow the reelection of the president for consecutive terms.
These price increases coincided with rising world oil prices during the buildup to the Gulf War. Domestic fuel prices were left unchanged, even when world prices fell in early 1991.
In addition to the transfers to public enterprises, current government transfers largely reflect wage payments in the decentralized agencies of the general government.
The tariff reform was initially announced by decree in 1990 (Law 339-90) and finally set into law in September 1993, An exchange surcharge of 15 percent that was applied to about 40 percent of imports was gradually eliminated by June 1995.
Since then, two additional tariff rates of zero and 3 percent have been introduced.
The ten tax brackets that existed previously were also unified.
Originally, the proposed ITBIS tax rate was 10 percent, but it was never implemented.
The differential for propane is actually a subsidy (that is, it is negative).
The public/private joint venture national refinery (Refidomsa) essentially has monopoly rights to import petroleum products. It obtains its foreign exchange for these imports at the official exchange rate.
In 1998, taxes on business licenses and assets of financial institutions (patentes) were eliminated and taxes on international telephone calls were reduced.
By early 1999, the number of large taxpayers had increased to over 500 companies.
For a fuller account of this measure, see Chapter 2, “Trade Reform in the Dominican Republic.”
During the stabilization effort of the early 1990s, the president himself assumed the role of coordinating revenue and spending operations.
A substantial share of revenue collections, including the petroleum differential and nontax revenues associated with the granting of mining rights, are delivered directly to the national treasury or the office of the presidency.
CEA, which owns about one-third of the land in the Dominican Republic, would provide land to the government in exchange for government transfers it has received in recent years to cover its operating losses.
The most recent data available on central government spending by function.
See Chapter 1, “Stabilization and Structural Reforms” for a more thorough discussion of this reform.