Local August 6, 2012 | 11:22 am

For education’s 4%, Medina must cut spending, not tax, Industries

Santo Domingo.- Dominican Industries Association (AIRD) president Ligia Bonetti on Monday said to materialize the allocation of 4% of the GDP for education, president elect Danilo Medina should adjust government finances and not apply a tax patch.

She said the new authorities aren’t moving at the pace business expected during the transition period, to reach three agreements within the National Development Strategy, such as taxes, electricity and education.

"To reach 4% for education the reins of government finances will have to be much more efficient, if the funds aren’t provided, and as a sector we would be willing to talk with the new authorities, but not under the concept of a tax patch," Bonetti said on Channel 11.

She said business leaders have had several talks with Medina just to understand where he sees the process, and from the National Business Council (CONEP) have agreed on the basic parameters of what they consider should be a comprehensive tax reform. "We understand that the new authorities must instil a vision of austerity, a view not to spend more and refocus the quality and efficiency of spending."

Bonetti wants the new authorities to consider a zero budget, not how much was spent in 2011 or in 2012, but deal with a budget instead, ministry by ministry, making cuts, trims, how much is needed and how it can be done.

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