JUNGUITO EXPLAINS THE ECONOMY'S ILLS AND HOW TO CURE THEM

Cartagena, Aug.22 (CNE).- "Way to recovery" is the name that the Government of the President Uribe has given to his economic policy that seeks to strengthen democratic security, recover the growth and reform the State to make it more efficient. All of this with a fundamental objective: to protect the sectors more affected and increase the Colombian's quality of life.

During the Andi's assembly (National Association of Industrialists), that it is taking place in Cartagena, the finance minister, Roberto Junguito, exposed the details of this economic policy that it was adopted taking in account the three imminent dangers that surround the economic stability of the country: the region's crisis, a menace that can contaminate Colombia, the increasing internal insecurity and the sharp fiscal problem that has risen the public debt's indexes. The Uribe's administration medicine for these illnesses, exposed by Junguito to the Andi, it is hold up by three pillars: strengthen of democratic security, growth's recovery through society weak groups support and sanitation of public finances and deep state's reformation to reduce it and to make it more efficient.

1) STRENGTHEN OF DEMOCRATIC SECURITY
For minister Junguito, recover democratic security is fundamental to reduce uncertainty and to make more attractive local and international investment in Colombia. At the same time, recover security means to strengthen more appropriately the Public Force.
The first step in this direction was taken with the declaration of the Interior Commotion. The second one, it was taken with the establishment of a contribution that represents the wealthy people's participation, with the purpose of that democratic security be extended to all Colombians.
The resources obtained from this contribution will be used to amplify the soldiers and police force, implement the Citizen's Cooperation Network, acquire communications equipment, strengthen human rights and protect local authorities as well as civilian.
Currently, the Government implements the necessary controls so that the earnings coming from the tax would be invested with total transparence and efficacy.

2) GROWTH'S RECOVERY
Looks to maintain prices stability, reduce unemployment, invest in groups with minor incomes and reestablish the investor's confidence.
Looking for these objectives, the Government considers imperative to move forward a fiscal adjustment, that will be joint of a social network support to protect the more vulnerable sectors of society.

This adjustment process combines a permanent increasing of fiscal resources and public spend reduction through a State reform. In this way is vital the Congress participation to approve structural reforms in the matter of pension, labor and taxes.
To overcome the Nation's fiscal problems, it has been also established another instruments such as:
. Readjustment of oil's prices to eliminate gradually the in force subsidy. The savings for this concept will finance priority social spend.
- Amplification of the taxable base from VAT, leaving out the basic products of the family shopping basket.
- Limit the exemptions and the taxes discounts that erode the incomes tax base.
- Frontal attack to tax evasion
- Readjustment of Government's spend in short, medium and long term
- Guarantee of international credit access. Especially those that offer the Central Bank, BID and Andean Corporation of Promotion.
- Guarantee of international market of capitals access.
- Strengthen of Treasury Titles internal market (TES)

3) STATE REFORM
Includes to merge entities, activate mechanism to use efficiently the resources and attack the waste with the objective that money goes to those that need it.