Government officials charged with running the electricity sector are trying to tell it straight. The Dominican Republic (DR), a country with a population of just over 8mn, spends more on electricity subsidies than it spends on education. In the past, these subsidies have amounted to the equivalent of nearly 3% of GDP, or 12 times what the nation's budget deficit or surplus would have been in their absence. Over the period 2003-2009, these subsidies have amounted to over $5bn (see Table 1). According to figures presented earlier this year by Magin Diaz, an economist and Under Secretary at the Ministry of Finance in Santo Domingo, in 2008, the government transferred the equivalent of 2.7% of GDP to the electricity sector. Despite this cash injection, the population faces regular blackouts of between five and 16 hours daily.
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