President Hipolito Mejia announced the formation of a commission to study ways in which to reduce government personnel expenditures. The group is to be known as the Comision Nacional para la Adecuacion del Personal en la Administracion Publica.
The business sector and economists have urged the government to reduce its payroll. Several claim that the government has appointed numerous presidential aides and inspectors who collect wages of more than RD$20,000 per month for doing nothing, and that these political patronage jobs should be eliminated immediately.
In December 2002, the government signed the Pact for Stability and Economic Development, in which it had agreed with the business sector to return its payroll to the levels seen in its first year in government, in 2000.
As part of his new proposal, President Mejia said that he would seek a foreign loan to fund a program to encourage the voluntary retirement of government employees.
Finance Minister Jose Lois Malkum has quantified the excess employment at 125,000 people, however, the government said that previous administrations are equally responsible for the high level of current government wages.
President Mejia appointed Elena Viyella de Paliza, president of the National Council of Business, as president of the new commission. Also forming part of the commission are representatives of the church (including Monsignor Agripino Nu?ez), the political parties and leading unions. The commission will have 90 days to make suggestions for a plan of action to then be considered by the Mejia administration.