The executive vice president of the Dominican Republic Association of Industries (AIRD), Circe Almanzar says that the talks on fiscal reform must start with talks on the quality of government spending. She made the point that there never will be enough resources to cover growing government spending, as reported in El Dia.
Speaking on the radio talk show Cuentas Claras from 7-9am on 95.7FM, she stated that the changes in the taxation regime must start with a revision of public spending. “Public spending is not resulting in a better quality government services, nor has it contributed to help the productive sector generate more jobs,” said Circe Almanzar yesterday, Wednesday 3 October. She said that President Danilo Medina knows there is a structural problem in government spending that has only worsened over the years. She says there the economy is slowing down. She argued that the government model is one of political patronage, with money not being invested in areas where it is productive or promoting development. She said that the increases in taxation have not improved quality of life for Dominicans. Almanzar says that is achieved with public policies that depend on decisions taken by the government. She said that the Dominican companies that pay taxes are penalized with the highest rate in all of Central America and almost in all Latin America, with 29% on profits.
The new Medina government is presenting a report on its position on fiscal reform to meet the government fiscal deficit inherited from the previous government to the Economic and Social Council today, Thursday 4 October for an opinion. As reported in El Dia, Minister of Economy Temistocles Montas said that Congress would have the last word on the taxation decisions. The increases need to be approved prior to presenting the 2013 National Budget later this month. The ruling PLD party holds the majority in both houses of Congress.