NewsWhore
12-08-2006, 02:50 PM
The outgoing president of the Association of Industries of the Dominican Republic (AIRD) Yandra Portela says that the new proposal presented by President Leonel Fernandez makes it clear that the government has no intention of cutting its spending in 2007. She said that a preliminary analysis of the bill sent to Congress shows that the proposed taxes will generate much more than the RD$17 billion that the government says it needs to balance the budget. She told the press that the government has undervalued what these taxes will raise by about 50%, according to a technical study commissioned by the AIRD. She points out, however, that the same analysis shows that the announced austerity measures will not produce the savings because most of the spending cuts come with exceptions and conditions, such as revoking them if the government collects more than established. Furthermore, she says the government has not set these in relation to the Gross Domestic Product, or in absolute terms. "Since the GDP will grow, the proportional relationship will be lower, but when you see the real amount of money, the government will be spending more than last year. That is, there is no true political will to reduce spending," said Portela, who says this was confirmed when the President announced a timid reduction of 20% in its advertising budget, but then did not include this in the bill he sent to Congress.
Portela concluded that "the proposed increase in taxes is damaging to the economy, will affect Dominican society and will have a negative impact on production, and is unnecessary because the 2007 fiscal year could be handled with a true austerity plan."
More... (http://www.dr1.com/index.html#13)
Portela concluded that "the proposed increase in taxes is damaging to the economy, will affect Dominican society and will have a negative impact on production, and is unnecessary because the 2007 fiscal year could be handled with a true austerity plan."
More... (http://www.dr1.com/index.html#13)