The National Association of Young Entrepreneurs (ANJE) establishes its position that government spending should be the focus of integrated fiscal reform. ANJE observes that in recent years, government current spending prevails over government capital spending. ANJE, in a publication in Saturday’s El Caribe, highlights that there has been a consistent increase in the number of government employees over the last ten years. Likewise, military expenditures have increased considerably, despite the absence of any military threat. It highlights that in 2004, the country spent RD$5.37 billion on military spending, without any reason to justify this level of spending.
ANJE is urging instead increased spending in health and education, which are below the percentage of GDP for Latin America. Furthermore, it points out that there is a high level of bureaucratic spending, given the predominance of politics in government decisions.
ANJE says that the authorities do not send the right signals to the market when they promise to reduce superfluous spending, but then end up naming new deputy ministers and new ministers without portfolio.
The business group also mentions the large amount the government spends on advertising. The government is one of the largest advertisers, with an expenditure of more than RD$6.2 billion last year, not including spending by the political parties. “And all this for what?” asks the organization.
ANJE suggests: “The government has to practice what it preaches, and show its commitment before being in condition to make demands. While it is true that the country’s fiscal deficit is not solved by reducing excess spending, it would send a clear signal that its economic policies are oriented to austerity and efficiency of spending.”