Where the cuts should come from

[NewsWhore]

Writing in Clave Digital, Ana Mitila Lora says that in the face of the fiscal reform that is about to take place, the government should instead look to cut costs by doing away with unnecessary bureaucracies that serve no real purpose. In her article Lora cites the example of how the Commission for Business Reform (CREP) should have been dissolved six years ago, but instead continued to employ 68 people at a cost of RD$2 million per month. Lora also points out the case of the National Sugar Council (CEA) which employs 1,119 people at a monthly cost of RD$13,861,000. The most glaring example, Lora says, is the State Run Electric Companies (CDEEE), which replaced the CDE in order to provide a more efficient service, but this has not happened. CDE operated on a total payroll of 6,000 employees as opposed to the current CDEEE payroll of 7,813 in total. Lora asserts that the "paternalistic" government spends an annual RD$12.5 billion that could be saved if it exercised more austerity, which is only RD$6 billion less than the estimated amount the government will receive next year from the fiscal reform. So why not cut spending instead of taking out more loans and over-taxing the public? Because, according to Andy Wolfe, then you would throw thousands of people out onto the streets with no jobs. It just depends which side of the argument you are on. Adding to Lora's suggestions are those made by businesspeople and industrialists who say that the government would save RD$23 million if they were to axe the subsidy on electricity, GLP, and make a few other minor fiscal adjustments. At a meeting titled "Thinking about 2007" members from business associations CONEP, ANJE and AIRD met to discuss other options to the reform. Reducing government spending by RD$12 billion and avoiding fiscal evasion could save the government close to RD$4 billion more.

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