The Dominican Republic is embarking on an ambitious fiscal consolidation path, projecting a record increase in government revenues alongside a gradual reduction of the fiscal deficit by 2028, El Dia reports citing Ministry of Hacienda and Economy sources. These efforts are anchored in a strategy to bolster tax collection efficiency and progressively roll back corporate subsidies.
The national focus is on sustainability, aiming to propel the nation toward an investment-grade sovereign credit rating within the next decade.
The country’s fiscal plan, detailed in the Ministry of Hacienda and Economy’s National Pluriannual Plan for the Public Sector 2025-2028, forecasts a massive injection of funds:
• Total fiscal revenues are expected to jump from RD$1.24 billion in 2025 to RD$1.62 billion in 2028, an increase of over RD$376 billion.
• This positive trend is primarily driven by actions to strengthen tax administration and enhance the efficiency of public revenue collection.
Crucially, this revenue expansion will coincide with a gradual reduction in the fiscal deficit. The deficit is projected to decline from 2.9% of GDP in 2025 to 2.2% of GDP in 2028.
Furthermore, the primary balance (which excludes debt interest payments) is set to improve substantially, increasing from a surplus of 0.7% of GDP in 2025 to 1.6% in 2028. Officials cite this performance as evidence of a clear path toward sustainable public debt.
The administration believes these fiscal and administrative reforms are essential steps to improve the country’s sovereign risk rating and achieve investment grade status before the next decade.
Gradual reduction of corporate subsidies
A key component of the strategy is the progressive dismantling of corporate subsidies and tax exemptions. The administration is seeking to optimize the use of public funds, intending to redirect these resources toward programs that generate a more direct and tangible impact on the economy and the public.
This emphasis on fiscal prudence, transparency, and social responsibility aligns with the newly enacted Law 35-24 on Fiscal Responsibility for State Institutions. This law sets a critical target: ensuring the Non-Financial Public Sector debt does not exceed 40% of GDP by 2035, while also imposing limits on primary spending growth.
While projected government expenditures are also set to rise (from RD$1.47 billion in 2025 to RD$1.85 billion in 2028), the administration is committed to maintaining a focus on high-impact sectors:
• Social welfare: The 2025-2028 budget will prioritize education, health, housing, and community services to improve the quality of life for Dominicans.
• Environmental protection: Increased resources will be dedicated to environmental protection initiatives, with a strong focus on climate change adaptation and mitigation.
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El Dia
5 November 2025