Apolinar Veloz assured that the governor of the Central Bank, Héctor Valdez Albizu uses a wrong system to measure GDP growth
By Onorio Montás
The Economist Apollinaris Swift denied the statements of the Governor of the Central Bank, Héctor Valdez Albizu, who assured that the Gross domestic product (GDP) grew by 13.5% during the past month, while this stands at 12.7%.
Veloz stressed that the governor uses the Index Monthly Manufacturing Activity (IMAM), to measure the growth of the economy, rather than using the index that reflects the entire economy.
In an interview for the radio program “Revista Dominical Dejando Huellas”, broadcast by CDNRadio, the economist assured that such economic growth has not occurred in the country.
He said that the United States economy affects the Dominican Republic, which presented a decrease of 0.7% this year, in this sense, he assured that in the country it should have fallen by at least 1.8%.
Electricity entrepreneurs, for their part, consider that the economic growth, so they intend to increase the rate in the coming years. According to the economist, the subsidy will be eliminated for the sectors with the highest consumption (700 kilos or more), those that consume the least (300 kilos on average).
90% of EDES customers correspond to the low-consumption sector and only 10% are large consumers, who will benefit if this measure is implemented.
“In a period of 5 years, the electricity tariff will increase to the sectors that consume the least. For those who consume the most, as they no longer have to subsidize anyone, the electricity rate will probably be reduced, “he told Onorio Montás during the interview.
Veloz indicated that this decision will cause an increase in prices not only at the national level, but also in products that are exported abroad due to an increase in production costs, which will make them less competitive in the international market.
“The electricity generation it is transversal for the whole economy ”, he explained.
The economist opined that the President of the Republic, Luis Abinader It is not concerned, as it claims, with the recovery of the economy, but with the recovery of the private sector.
He pointed out the fact that companies dedicated to tourism, the electric sector and fuel, large monopolies and free zones, for more than five decades have been exempted from making their contribution to the country’s economic growth.
He stressed that currently, the government of Abinader has maintained the same line, so that these groups remain “untouchable.”
“The president does not lead this government, the president only announces these public policies, while others design and execute them,” he stressed.
Also, the subject of a possible Tax Reform has given much to talk about in recent weeks in Dominican society. In this regard, Veloz assured that it is necessary, but does not agree with the way it is being managed by the government.
In his opinion, the tax reform was released to distract the population from the roles of Pandora, where the president is involved in two offshore companies allegedly used to evade taxes.
According to the economist, a proposal of fiscal reform with weaknesses that the population captures, and provokes negative reactions because it fundamentally “punishes” the middle class.
Although Abinader clarified having informed the Chamber of Accounts Regarding his participation in these companies days before assuming the presidency, the issue had remained present in public opinion.
“A government led by President Abinader cannot ask people to pay more taxes when he is just trying not to pay them through those accounts. offshore”Said Veloz.
He considered that these actions put into question the transparency of the government, however, he declared that a fiscal reform is necessary due to the high deficit that currently exists in the country.
“What the government has done is spend, nothing more. It has a fairly high fiscal deficit and it is not conceivable that the debt will be put within the budget. The objective that the government should have is to reduce public debt and for that, it must reduce the deficit ”, he added.
The economist reproached that there is no organization in the announcement and withdrawal of public policies, since the president declared that he would be the one to direct the fiscal reform and that same afternoon, the minister of the presidency, Lisandro Macarrulla, announced that the proposal should be attended by the Economic and social Council (CES).
“I agree with the minister because I think that this tax reform should not be discussed in Congress, that reform should be openly discussed with the whole of society or with those groups that participate in Dominican public life, preventing those who now lead the CES limit the participation of civil society because they have their favorite group, ”he said.
He added that the National Congress does not represent the people, but rather their personal interests, which is why they should not discuss the issue of tax reform.