Today’s editorial in El Caribe newspaper’s comments that when people think of tax reform they think of modifying the tax structure so as to ensure more resources for government, given the enormous amount of unsatisfied needs. “But when there are limited revenues, the satisfying of the needs can be achieved with an increase in resources, increased efficiency of spending, or with both measures at the same time. That last alternative is what the business sector is proposing,” writes the newspaper.
The newspaper urges that the pending tax reform should include schemes that not only guarantee the efficiency of spending, but also its transparency. It comments that in line with this prerogative, the legal advisor to the Executive Branch has announced a forthcoming decree for contracting public works only through tenders. It mentions that this would comply with requirements in the International Monetary Fund stand by arrangement and the DR-CAFTA free trade agreement.
But the editorial writer also mentions that the government has much work to do regarding efficiency and quality of public spending. “There is more than enough cases of mismanaged resources of the state, sometimes borderline with dilapidation and arrogance.”
“Everyone knows that there is an excess of 100,000 people on the public payroll, but no government has taken action to stop the problem. On the contrary, every administration adds more and more employees. Another example was revealed in the UNDP 2005 Human Development Report, which found that 28 years of spending per student is required to produce a high school graduate. The UNDP report also revealed in the public health sector there is an excess of administrative and medical personnel, despite the bad quality that characterizes services in the public health centers.
“How then to justify the search for more resources, if the ones that the government has are not well spent?” questions the editorial writer.