The National Council of Business (CONEP) disagrees with the government’s agreement with the IMF to leave its payroll at October levels, viewing it as excessive. The government payroll cost taxpayers RD$2.18 billion in October, an amount that was already RD$92.7 million more than what was spent in September.
The business sector requested that the government incorporate recommendations made by a commission formed by the government in May 2003 to reduce public employment. The commission recommended that the payroll be reduced to the levels of August 2000, when it cost a lesser RD$1.2 billion.
In 2005, the government plans to spend RD$35 billion on its payroll, which will include the approved 30% wage increase to be effected in two parts: a 15% increase in January and another 15% in July.
Former Central Bank Governor Jose Lois Malkun had said there were at least 125,000 too many names on the government payroll.
CONEP points out that there is no point in the business sector becoming lean and more modern if the government does not do the same. “To establish new taxes in detriment of the productive sectors and consumers can only bring more problems,” it stated. The business group advocated that “it is time to make the state efficient and strong and reduce its size. It is time to eliminate barriers and obstacles to competitiveness and promote investment and to create jobs.”
So far, the Fernandez administration has increased taxes in order to continue to operate its large bureaucracy.