Conep demand prudence in spending

The dome of the National Council of private enterprise (Conep) considers it essential for the development of the country that at the appropriate time sectors abovementioned to discuss and agree on a great fiscal pact that transparent efficiency and quality of public spending and called on the Government to exercise caution in the use of resources during the current electoral year.

In a document sent to the press, the President of the corporate body chaired by Manuel Diez Cabral, believes it necessary to avoid a disproportionate expansion of public funds in the first half of the year and load the population in the following semester.

The pronouncement of Conep occurs after some media publish information attributed to the President of the Committee on Finance of the Senate, Tommy Gallant, which the Congress of the Republic will endeavor to adopt this year a reform tax, after the elections, information that was clarified by u000aCongressman at a press conference, that there is no intention of the Government to submit to Congress a fiscal reform project.

According to digital media, Senator Galán clarified next at noon "that it was difficult to think that, because it would not be wise or prudent that within the framework of a national election, where passions overflow and process that Congress is made precisely for the main actors of these political struggles, to initiatives of this kind could be discussed and analysed".

Entrepreneurs
El Conep said in his statement that "the objective of the fiscal pact that arises in the national development strategy must not under any circumstances the abstraction of resources continue to disproportionately expand public spending or cover the deficit of public finances, but creating the conditions for greater competitiveness of the productive sectors and increase the generation of" u000a"formal jobs". It is vital for national development that national sectors abovementioned at an opportune time to discussion and consensus of a large integral fiscal pact that puts special emphasis on transparency, efficiency and quality of public spending, explains.

In this regard, the Agency reiterated its position that it is necessary that there should be greater fiscal discipline, so as to avoid patches tax situation to cover the shortfall in the finances public.

Understands that the only possible fiscal reform is which has among others aims to balance the tax burden between the formal and informal sectors to eliminate the disloyalty tax as a form of competition, the decrease of evasion, expansion and universalization of the base of taxpayers, and the Elimination of tax distorsionantes.

The END
the national strategy for development (END) not only provides the u000aimplementation of a major fiscal pact, but a social pact and another in the electricity sector, as part of the demands of the population for the solution of the most pressing problems of the society.

The fiscal pact that would run, however, must be the result of the consensus of the various sectors, including political parties and representatives social, so that run on the long term.

The IMF
to end of December the Minister of economy, planning and development, Themistocles Montás, had informed the IMF to resume pending Covenant Stand evaluations by signed with Dominican Republic after passing the festivities Christmas.

talks with the IMF had been paralysed since September of last year, but then resumed and has already been made three missions of Dominicans technicians at the headquarters of the multilateral financial institution in Washington, throwing results u000aproductive, according to sources. The Fund requires to reduce subsidies that gives the Government the electricity sector and make transparent the rate, measure that as explained it rise the energy bill by 18% to the users of the service, gradually, to what the authorities have refused.

For 2011 the Government committed itself to reduce the subsidy to the electricity sector and contribute only $350 million, which then rose to US$ 690 million and estimated closed the year by surpassing the $900 million, which has intranquilizado the IMF technicians, who observed the situation as a recurring failure.

Another of the "waiver" or dispensations which assumptions would incur the Government authorities of the IMF would be the growing deficit in public finances, but is estimated to make efforts to close a position better to that found in last December, with the sale of assets and profits generated from assets of the State in the Bank of u000aReservations.

Assessments
Although the country are pending the seventh and eighth revisions of the Covenant Stand by signed in November 2009 by 28 months with the International Monetary Fund (IMF), the financial programme does not speak of another tax reform. It is recalled that to contribute to raising the tax revenue of the central Government passed the Act 139-11.

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