Economist Miguel Collado Di Franco is calling for a rigorous overhaul of government spending, arguing that the Dominican Republic’s ruling political class must lead by example as international geopolitical crises strain the national economy. Speaking on the news program El Despertador on 15 April 2026, Collado Di Franco criticized the current administration’s handling of global volatility, warning that the country lacks a concrete roadmap to mitigate external shocks.
The fiscal deficit threat
Collado Di Franco raised the alarm regarding the widening fiscal gap. While the National Budget was initially structured around a 3.4% deficit, he warned that current spending levels could push that figure past 4%, reaching as high as 5% of GDP in an adverse scenario.
Since the beginning of the year, the economist has proposed a minimum 5% reduction in state spending to stabilize public finances.
“When there is talk of subsidies but spending remains the same, there are no real savings,” Collado Di Franco stated. “The cost of this model is simply deferred taxes through public debt. We, and future generations, will pay for it, including the interest.”
The economist challenged the sustainability of maintaining heavy subsidies without corresponding cuts in other areas of the budget. He noted that relying on debt to fund these measures is a short-term fix with long-term consequences.
Furthermore, he addressed the government’s stance on private sector pricing, labeling it “unrealistic” to expect businesses to absorb rising international costs indefinitely without adjusting consumer prices.
Collado Di Franco cautioned that imposing new fiscal burdens on households and businesses during a crisis would be “madness,” reiterating that state savings must be the primary tool for fiscal balance.
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Noticias SIN
16 April 2026