Saturday, March 26, 2011

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Leonel Fernandez decreed austerity measures


President Leonel Fernandez declared austerity measures announced on 17 March in the nation, in order to cope with the rising prices of food and fuel.

The Executive authorized the Ministry of Finance to reduce 12% of the available assignments public institutions, for the General State Budget 2011. Decree 186-11

contained in this order, which excludes the ministries of Education, Higher Education and Public Health. Also exempt from the measure, according to the decree, the entities that have rates established by specific laws and transfers to subsidize social programs.

percentage budget reduction will be applied to state entities both centralized and decentralized, and social security.

"decentralized institutions and social security must submit to finance their budgets adjusted according to adjustment measures spending by 30 April this year, "cites the decree. Similarly, the decree 184-11 mandates that public sector institutions to pay taxes on goods and services contracted for a period of a year.

This includes 17% tax on the registration of motor vehicles. "Officials who authorize purchases in violation of the provisions of the decree, are responsible for payment of taxes," warns presidential document. The Presidency Republic Finance orders rejecting requests for exemption from state institutions.

Furthermore, the Decree 185-11 to send to the tax deducted electricity bill of each public office monthly budget allocations. "Finance, through the Directorate General of Budget, will reduce the payment to be made of the electric bill from public institutions, the corresponding budgetary appropriations," the decree. If an entity disagrees with the consumer is billed, may apply to the relevant electricity distribution company and the complaint must be answered within 20 working days.

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