Former long-time Minister of Tourism Francisco Javier García, a leading figure in the now opposition Dominican Liberation Party (PLD) and a presidential aspirant, attributed the government’s resource shortages to rising expenditures, particularly in advertising. He echoed sentiments expressed by Leonel Fernández, president of the People’s Force party, as reported in Diario Libre.
García accused President Luis Abinader’s administration of inflating the public payroll by RD$132 billion, increasing pensions by RD$33 billion, and raising electricity subsidies by RD$61 billion. He argued that these measures stem from the declining efficiency of electricity distributors and a lack of investment in the electrical infrastructure, leading to heightened losses.
He emphasized the need for the government to reassess its spending increases, asserting that if the payroll were reverted to 2019 levels, there would be no need for tax reforms. Overall, García reported that public spending has surged by RD$233 billion over the first four years of the Abinader administration.
In his capacity as a former Minister of Tourism, García cautioned against the removal of tax exemptions for the tourism sector, warning it could lead to a significant withdrawal of investments. “From now on, investors who were eyeing the Dominican Republic for tourism will be prepared to leave. Investment capital has no preferred residence,” he stated.
He noted that 24 countries in Latin America and the Caribbean offer similar incentives, placing the Dominican Republic in direct competition.
García also reflected on the fiscal reforms implemented by former President Danilo Medina in 2012, highlighting that Medina safeguarded essential services, including financial services, pension plans, transportation, electricity, water, healthcare, education, cultural services, and beauty services—services that could be burdened by the current administration’s proposals.
He criticized the increase in taxes on savings as a detrimental move for the diaspora, which holds funds in Dominican banks, noting that they would see their tax rate on interest earnings rise from 10% to 27%. He predicted that food prices would also increase due to the impact of the new cargo tax, even on exempt items.
García dismissed the government’s calls for consensus, labeling them as demagoguery. “It’s a lie. If the government were genuinely interested in listening to sectors, they would do so,” he asserted.
He urged PLD supporters to join the national struggle, emphasizing that social peace is at stake.
Sigmund Freud of the Ministry of Public Administration disputed the statements by Garcia, saying that from 2020 to 2024 the number of government employees increased 63,373, or 11.41% in comparison to August 2020.
The number of public employees reported by the MAP does not take into consideration the long lists of advisors with high wages contracted in the present government.
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Diario Libre
Noticias SIN
17 October 2024