The president of the Economic and Social Council (CES) has handed the government a document advising the Medina administration to further reduce public spending and submit a RD$410 billion National Budget, instead of the proposed US$459 billion spending presented in the draft reviewed by the CES.
On Wednesday 17 October, the president of the Economic and Social Council (CES), Monsenor Agripino Nunez Collado argued that if spending were to be reduced further, the government would be able to meet its commitment to allocate 4% of the Gross Domestic Product (GDP) to education, which requires an additional RD$50 billion.
Nunez Collado said that analysis of the proposed government budget for 2012 includes overspending of RD$22.68 billion in additional salaries, expenses, tips, advertising and fuel, which has put fiscal sustainability at risk.
The CES recommends that the 2013 budget should reflect a more rational use of public spending.
Nunez Collado said that the recommendations seek to amend the “extraordinary overspending” of RD$59.4 billion in 2012. This included RD$6.17 billion in extra wages, RD$1.27 billion in per diems and representation expenditures, RD$6.06 billion in bonuses, RD$2.63 billion in advertising and RD$6.52 billion in fuel costs. He said that the authorities would have both the challenge and the opportunity to recover the confidence of different sectors, and should take measures to improve quality and prudence in public spending, increase transparency and show fiscal responsibility, and reduce budget chapters identified as political patronage.
“The government needs to make a substantial effort to eliminate wasteful spending and institutional duplication, correcting and eliminating wasteful expenditures such as extra wage payments, per diems, representation expenses, unjustified subsidies and excessive investment in non-priority infrastructure,” says the document presented by the CES.
The Minister of Planning and Development, Temistocles Montas said that the economic team would meet today, Thursday 18 October, to respond to the CES.
As reported, the members of the CES expressed their concern over the evolution of public finance over the past five years, as it has been characterized by continued fiscal deficits, a high percentage dedicated to making interest payments and high levels of public indebtedness.
www.listindiario.com/la-republica/2012/10/17/251416/CES-dice-el-Gobierno-tuvo-un-desbordamiento-en-el-gasto-por-unos-22-mil