Santo Domingo. – The senator for the National District, Omar Fernández, warned that the General State Budget proposal for the year 2026 presented by the Executive Branch shows poor fiscal management, despite a favorable international economic context for the Dominican Republic.
The legislator observed that although the price of oil is projected to be 25% lower by 2026 compared to this year, these values are not reflected in prices of its derivatives and other products that people consume.
Likewise, although revenues from gold extraction and export continue to grow due to its historical value on the US$4,000 per troy ounce in the international market, There is no evidence of adequate management of these resources above what was projected.
He People’s Force congressman pointed out that the Government once again proposes a highly deficit structure, in which 33% of the financing It comes from debt, which is equivalent to more than 400 billion pesos in new loans.
Likewise, he indicated that the budget maintains a markedgo towards current spending, which amounts to 1.4 billion pesos, representing 86.8% of the total expenditure and 16.2% of the Gross Domestic Product (GDP), with an increase of 4.9% compared to the previous year.
Within that expense, Fernández warned that 38.6% It will be allocated to public payroll, vehicles and other superfluous expenses, including an increase in public payroll equivalent to 18,581 million additional pesos.
He explained that this increase would be comparable to “hiring 136 people every day throughout the year 2026, taking as salary reference public sector average.
In addition, he denounced that the budget project once again fails to comply with the Public Credit Law, by allowing current spending to exceed tax revenues. “Since 2021, this practice has been repeated, but on this occasion a new record is established by exceeding the legal limit by 65,291 million pesos,” he stressed..
In contrast, the senator pointed out that the public investment proposed for 2026, capital expenditures will barely reach 215,284 million pesos, which represents only 13.2% of total expenditure and 2.5% of GDP, despite being one of the main drivers of economic growthico.
Finally, Omar Fernández proposed the review of the General State Budget project, with the objective of redirecting resources destined for current and superfluous spending towards capital investment, to boost infrastructure, generate jobs and contribute to the reactivation of the national economy
