Day: October 15, 2024

Rijo Presbot: Government promotes Fiscal Modernization Law to strengthen primary care and reduce debt

The Budget Director reaffirmed the need for tax reform to increase state revenue, ensure a more equitable tax system, and promote the country's economic development. He highlighted the government's efforts with the Fiscal Responsibility Law. Among the topics addressed by Rijo Presbot during an interview on the program "El Día," alongside journalists Germán Marte and Edith Febles, he emphasized the importance of reducing public debt, a measure he asserts is necessary given the current deficit model inherited from the 2008 crisis. He described the establishment of a "highly clientelistic" model that generated debt with no return, as the funds obtained were not used sustainably or efficiently, perpetuating a weak financial situation. Among the key points of the proposed Fiscal Modernization Law, Rijo Presbot also listed the fight against tax evasion. According to the Budget Director, the plan is to implement more rigorous mechanisms to ensure that all sectors of the economy contribute equitably and that resources are distributed in the best possible way, maximizing their impact on the well-being of the population. This will ensure that resources are used more efficiently and in areas of significant social and economic impact. Finally, Rijo Presbot indicated that the Government reaffirms its willingness to listen to proposals from different sectors to enrich this Reform with the common goal of raising the quality of life for citizens. He added that the Government seeks not only to balance public accounts but also to create a framework that promotes more inclusive and sustainable economic development for the country. Rijo reiterated the importance of the good practices of the current budget management and the value of the performance demonstrated by the country and its government. “Social participation is essential to strengthening democracy. The Dominican Republic ranks first in the Americas for social participation in the budget process, achieving a historic score in the 2023 Open Budget Survey,” he stated. It is worth noting that President Luis Abinader recently presented the Fiscal Modernization Law, which aims to raise the country's level of development by improving education, health, security, transportation, wages, and social assistance services. Fiscal Responsibility Law: Better Control of Public Spending. The Budget Director reaffirmed the importance of the Fiscal Responsibility Law, a government initiative that guarantees a more rigorous regulatory framework for the administration of public resources. This law, along with the Fiscal Pact, is considered indispensable for ensuring a balance between state revenues and expenditures, allowing for an appropriate and fair redistribution of resources. “Efficiency, transparency, and accountability are fundamental pillars of this reform. The government has emphasized the importance of continuing to strengthen these aspects, combating opaque administrative practices that have been financed with loans instead of structural solutions,” stated Rijo Presbot. Rijo Presbot reiterated that the introduction of the proposed Tax Modernization Law will not negatively impact people's quality of life and that its implementation is not intended to target any specific sector.