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July 23, 2025
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Only tax reform would stop the interests of the debt

Only tax reform would stop the interests of the debt

To stop the increase in the interests of the Dominican public debtwhich only for this year are estimated at 298,478.7 million pesos, it is necessary that the authorities design and implement a Fiscal reform and improvements to spending, in the opinion of several economists. From the business sector, the issue is not yet considered as a concern, although they raise a greater capital investment.

Until the government does not carry out a Fiscal adjustment “Of a certain magnitude” the interest payment Of the debt, which are the product of the deficit that the State maintains every year, it will continue to increase, according to economist Raúl Ovalle, socio-director of the Analytica firm.

“We have to prepare to design a reform that, among other things, allows to reduce the fiscal deficit and contain that burden of interests because while the fiscal space is increased available so that the government investing in infrastructure or in social programs is affected and reduced,” he said.

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For next year, tax authorities estimate paying in debt interest 322,360.9 million, which represents an 8 % increase in relation to 2025.

In the same way, the professor and researcher of the Autonomous University of Santo Domingo, Francisco Tavárez, who said the issue should necessarily be necessarily addressed through a Fiscal reform that allows to reduce the weight of the debt interest and generate a minor Debt pressure.

“The interests of the debt will continue to rise if the corrections that have to do with profound reforms of taxation are not made, but they also have to be reforms from the expense level. If we continue with a fiscal deficit of three percent, then the interests of the debt will grow more and more”Francisco TavárezEconomist and researcher

About the rise of projected indebtedness By 2026, which would amount to 366,297 million pesos, the professor described him as worrying and clarified that every time the financing needs are raised by the deficit and financial applications the financial applications Budget adjustments They force social and infrastructure investment.

“We are brought, we need Generate fiscal space And this has to come for the Expenditure and income adjustment And if it is not done we are going to have greater Debt pressure and less social investment and infrastructure investment, “he said.

Greater investment

The vice president of the National Council of the Private Company (CONEP), César Dargam, and the president of the Dominican Association of the Electrical Industry (ADIE), Roberto Herrera, after pointing separately that the issue of the issue of indebtedness It is not to alarm, they suggested to the government to raise investment spending.

“The problem of the countries is not that they are inecendCésar DargamVice President of CONEP

Stated that part of the public debt Go oriented to Increase spending of capital by the government to meet the demands of society.

Meanwhile, Herrera considered that so far the authorities have given adequate debt management and stressed that credit agencies And international banks “recognize that there is nothing to worry about at this time.”

“What is there is to continue seeing how in the future we managed to do investment projects that return more benefits and add more value and prevent debt from growing, “he said.

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