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View Full Version : Dominicans skeptical about austerity measures



NewsWhore
08-27-2012, 04:50 PM
A news item in Diario Libre and Juan Bolivar Diaz in his popular weekly column in Hoy were just two mentions in the weekend press that reflected public skepticism on whether the government is really serious about cutting its spending. The World Economic Forum gave the former PLD administration top ranking in wasteful spending in the world.

Diario Libre reminds readers that in 2004, upon taking office from former President Hipolito Mejia of the PRD, Leonel Fernandez promised to adopt austerity measures as a way of tackling the serious economic crisis. He announced a 20% reduction in government spending and the elimination of government posts created for political patronage, prohibited non-essential purchases and transactions and the acquisition of new vehicles, international calls, and reduction in per-diems and government employee expenditures. The plan soon faded over time, and the contrary occurred; government spending and political appointees increased at a fast pace. Diario Libre observes that the only difference between the present and 2004 measures is President Medina's statement that anyone found violating the dispositions would be sent to justice.

Juan Bolivar Diaz recalls that Fernandez submitted a second ruling, the Law of Austerity in the Public Sector with Decree 497-06. It ordered wage cuts and prohibited the regular practice of financing government employee vehicles, and restricting other expenditures. It also reduced government advertising by 25%. This decree was also practically ignored by the Fernandez administration of the same political party as President Danilo Medina.

www.hoy.com.do/tema-de-hoy/2012/8/25/443266/Danilo-abre-via-hacia-pacto-fiscal (http://www.hoy.com.do/tema-de-hoy/2012/8/25/443266/Danilo-abre-via-hacia-pacto-fiscal)

www.acento.com.do/index.php/news/20729/56/El-presidente-Danilo-Medina-abona-el-terreno-para-el-pacto-fiscal.html (http://www.acento.com.do/index.php/news/20729/56/El-presidente-Danilo-Medina-abona-el-terreno-para-el-pacto-fiscal.html)

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