The director of the Economics program at the Technological Institute of Santo Domingo (Intec), Richard Medina, predicted yesterday that capital investment by 2025, such as the construction of schools, hospitals, streets, bridges and roads, will be at the lowest levels. since 1990: 2.2% of gross domestic product (GDP).
He specified that in 2025 a reduction in public investment of more than RD$28,000 million is budgeted, which is equivalent to a drop of almost 14% compared to the current 2024 budget.
He recalled that the reduction in capital spending was to be expected, since the Government needs to accommodate the increase of RD$34,679 million in interest payments on the debt that will be incurred in 2025.
He considered that the lower capital expenditure makes it difficult for the Government to comply with the infrastructure works announced to start or continue during 2025.
He explained that, given this reality, it is likely that a reformulated budget will be seen in the middle of the year that includes increases in capital spending to bring it to 2.6%-2.8% of GDP, an increase of between RD$30,000 million and RD$40,000 million.
He added that this possible increase in spending would be financed with additional loans, unless the Government implements some tax measure that increases tax collections or receives some extraordinary income. He pointed out that the fiscal deficit in 2025 will be higher than in 2024.
