The Minister of Economy, Planning and Development Pável Isa Contreras, assured that the issue of tax reform is off the government agenda
The country’s public debt problem will only be resolved with a profound fiscal reform, the Minister of Economy, Planning and Development, Pável Isa contreras.
However, he assured that the issue of tax reform is off the government agenda.
He considered that, in the long term, the country has to think about a deep reform, taxation with respect to income in order to reduce public debt and thus finance the provision of fundamental public services.
The official was interviewed prior to the opening of the XXXI Meeting of International Cooperation Directors of Latin America and the Caribbean, organized by the Latin American and Caribbean Economic System (SELA) and the ministries of Economics, Planning and Development, and Foreign Relations.
He stressed that more than 20% of tax revenues are used to pay interest on foreign debt, resources that, according to Isa Contreras, could be used on other fundamental issues.
He considered that as long as public finances are prudently managed, with a controlled increase in public spending and dynamic tax collections, the debt situation can be managed.
He reiterated that the weight of the public debt in the budget is a matter of concern, which is recognized by the institution he directs.
He pointed out that in a context of much fiscal restriction, the Government has had to bite the bullet to provide better health and education.
He argued that the creation of more and better jobs and the provision of better public services are the basis of the president’s administration. Luis Abinader to improve people’s quality of life.
“We continue to have the challenge of accelerating the creation of more and better jobs, because it is through employment that people can perceive concrete benefits from economic growth,” he said.
He highlighted that in the last year more than 100,000 jobs were created, especially formal ones, according to the National Continuous Survey of the Central Bank’s Labor Force.
He predicted that for this year the economy will grow by 4.5 percent of the gross domestic product (GDP), but he has “the hope that it will be a little higher growth.”
A 4.5% GDP expansion is still “very good” growth, he said.
The State spends more than half of total spending on some social work, such as health, education, housing and community services.
