The Dominican State has spent more than what collects or receives for other concepts, which causes a deficit that must be covered with the public debt issuance. Although the Fiscal income They have grown, the bills They have surpassed him, a gap that can only be closed by decreasing expenses or through a Fiscal reform.
The government intends to apply the first recipe to the horizon, reducing expenses as a percentage of the gross domestic product (GDP) between 2026 and 2029, shortening among other things the subsidies granted to companiesaccording to the budget political report for the fiscal year of the year 2026.
This spending chapter, which are the subsidies granted by the State To different sectors, including agricultural and public transport, the government seeks reduce it to 3,000 million pesos By 2028, from the 13,500 million that it budgeted for such a year.
In the document, prepared by the Treasuryit is highlighted that Total expenditure of the central governmentas a percentage of GDP, projects at 18.5 % for 2025with a decreasing trend that would lead to 17.5 % in 2029.
He adds that Primary expenditure It would be reduced from 14.9 % of GDP to 13.8 % in that period, “evidencing commitment to a prudent fiscal policy oriented to the sustainability of public finances.”
However, the public spending will continue increasing in absolute terms From 2026 to 2029, projecting the Treasury authorities that reach 1,972,948 million pesos towards this last year.
2026 deficit
The Government projects a deficit of 254,916 million pesos For next year, equivalent to 2.9% of GDPincome product of 1,336,197 million and bills for 1,591,111.6 million pesos.
Of the estimated expenses for next year, 1,400,081.7 million pesos will be allocated to current expensesequivalent to 88 % of the totaland the remaining 12 %, representing 191,029.9 million pesos in investments.
In the report, the authorities maintain their “firm commitment to the Fiscal disciplinehe strengthening tax revenues and the efficient management of public resources, in full concordance with the provisions established in the Fiscal Responsibility Law ”.
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“Compared to the current budget, there is a slight reduction of total expenditure as a percentage of GDP (by 2026), which responds to the decision to maintain the fiscal deficit around 2.9 % of GDP, as well as compliance with the growth rules of primary expenditure established in Law 35-24 on the tax responsibility of state institutions,” he says.
