Former presidential candidate for the PRM, Luis Abinader expressed concern for the International Monetary Fund’s recommendation for a significant fiscal adjustment, which in the past has translated into higher or new taxes for taxpayers.
He said the government has proven to be bottomless pit of funds, sucking up any amount of money it receives.
He said that he is aware that nation’s development requires additional resources, but these should only be forthcoming when there are guarantees for the efficient use of these in improvements in public services and when administrative corruption is confronted. He said under the present circumstances of the Medina administration, more taxes would be the equivalent of transferring money to a bottomless pit.
He said the IMF contradicts itself when it reports the economy is robust, but then calls for significant tax adjustments. He said the present situation would have been averted if the Medina government had listened to the warnings by the PRM and the business sector that called for a stop to the unbridled accumulation of debt, recommending improved efficiency and transparency of public spending.
“And not only because much of that debt has had a doubtful use, such as to cover overpricing in public works in the framework of the most absolute impunity such as the Odebrecht projects, the purchase of the Super Tucano aircraft, the remodeling of hospitals and construction of classrooms, among others, or to cover current spending and wasteful spending of the government, but also for the high cost of the loans,” he said.
Abinader said the government is paying on average 8-9% for public debt, which means RD$140 billion will go to pay debt in 2017 that represents 28% of all tax revenues.
“In the present situation, the Dominican government cannot legitimately receive a single cent more in taxes, until there is an end to the hemorrhaging of fraudulent funds. It is unacceptable to transfer more funds to a government that has refused to improve quality of spending, that has rejected transparency and confronting corruption,” said the economist-politician.
17 February 2017
