Haivanjoe Ng Cortiñas issued a sharp rebuttal to President Luis Abinader’s recent optimistic economic outlook, characterizing the first-quarter 2026 budget execution as “alarming” and a direct contradiction to the administration’s claims of fiscal strength, as reported in Listin Diario.
According to Cortiñas, official data reveals a primary operating deficit where total revenues are failing to cover even the government’s basic day-to-day functional expenses.
Cortiñas says the government is spending beyond means. He highlighted two critical figures to illustrate the current fiscal imbalance. Between 1 January and 20 March 2026, total government revenue reached RD$261,747 million, while total spending surged to RD$327,459 million.
The result is a staggering overall deficit of RD$65.71 billion thus far this year.
“Technically, the country is in a position of temporary operating insolvency,” Cortiñas stated. “For every RD$100 that enters the state coffers, the government has already committed RD$115 just for consumption, debt interest, and transfers. This reality forces constant borrowing, not to build infrastructure, but to fund daily operations.”
Distorted priorities: Debt over development
The economist argued that the breakdown of the RD$327.46 billion in total expenditures exposes a “deeply distorted” set of priorities:
• Debt Interest: This remains the fastest-growing category, with RD$85.23 billion already paid out (representing 26.3% execution).
• Capital Expenditure (Investment): Only RD$26.24 billion has been executed, a mere 8.01% of total spending.
Cortiñas pointed out the irony of the administration labeling public investment as a “growth engine” when the state is spending 3.2 times more on interest payments than on productive infrastructure.
Capital Under-execution as a “petty cash” strategy
While current spending (salaries, services, and transfers) overflows, investment in “Constructions in Progress” is lagging at just 8.5% execution, far below the 13.0% target mandated by Law No. 99-25.
Cortiñas alleged that this under-execution is not a form of savings, but rather a “partial paralysis of public investment” used as a workaround to compensate for a rigid and inefficient spending structure. The Abinader administration has been consistently increasing current spending by approximately 12.4% annually, leading to what opposition critics call a “bloated payroll” that complicates fiscal reform.
The “liquidity fallacy” of international reserves
The economist challenged the President’s use of US$16.17 billion in international reserves as proof of fiscal solvency.
“Confusing monetary health with fiscal health is a grave error, unless it is a deliberate communication strategy,” Cortiñas argued. He clarified that reserves are Central Bank assets intended for monetary stability and exchange rate protection, not an emergency fund to cover the deficit of a government that spends more than it collects.
In conclusion, Cortiñas remarked that the “shared sacrifice” the President requested from citizens is already being paid through inflation and rising fuel costs, while the state refuses to curb its own spending rhythm.
Former opposition presidential candidate Abel Martinez said the same, calling for the government to reduce current spending, as reported in Hoy.
Read more in Spanish:
Listin Diario
Hoy
23 March 2026