Santo Domingo. – The minister of Hacienda, responding to business leaders’ demand to trim government spending, proposed to start with reducing the RD$104.0 billion they get in tax exemptions and which takes one third of the national budget.

Vicente Bengoa also denied that the government is spending more now than in previous years and that it has increased the foreign debt, because now he said is only 16% of the Gross Domestic Product, and was 24.5% when president Leonel Fernandez took office in August 2004.

“The first thing is, and we’re tired of repeating it, that public spending has been increased because of the subsidies given and which is a very important cost, the fiscal cost, which is the exemptions provided for the industries. This year it’s estimated at RD$104.0 billion, which is the third part of this year’s budget,” he said.

Bengoa’s statements respond to demands of change in public policies and greater government austerity by the president of the business leaders grouped in Conep Lisandro Macarrulla, in a speech before the American Chamber of Commerce Wednesday.

Macarrulla also stated business’ concern on the growth of public debt for consumption spending and regretted the policies implemented to develop one sector while sacrificing others.

But Bengoa, interviewed in the San Carlos sector at the end of a mass today, stressed that the government is sacrificing RD$104.0 billion in incentives it gives to industrialists “and that’s a cost, if they want for us to maintain a course in the restructuring of spending, then great, we’re going to start that way.”