Santo Domingo – Facing shifting global and domestic economic conditions, the Dominican government has officially delivered an amended 2026 General State Budget bill to the national Senate, crafting adjustments to lift public investment, sustain core public services, and shield economically vulnerable groups from ongoing market pressures.
The revised proposal does not emerge in a vacuum; it is shaped by three major overlapping factors that have altered the country’s fiscal landscape in recent months: persistent volatility in international commodity and financial markets, widespread global trade disruptions that have impacted local supply chains and revenue streams, and the full rollout of Law 30-26, the government’s landmark tax reform legislation designed to strengthen national revenue collection through streamlined administrative processes and an expanded tax base.
According to the official breakdown of the plan, the Central Government projects total revenues will reach RD$1.383 trillion in 2026, while total public spending will rise to RD$1.785 trillion. This gap translates to a projected fiscal deficit of RD$280.6 billion, aligned with the government’s stated fiscal stability targets amid current economic challenges.
A core priority of the amendment is directing additional resources to high-impact government institutions. An extra RD$40.98 billion has been earmarked for key agencies, including the Ministry of Public Works, Ministry of Agriculture, Ministry of Housing (Mivhed), Ministry of Industry, Commerce and Micro, Small and Medium Enterprises (MICM), and the Ministry of Finance and Economy, among other priority bodies.
Beyond new allocations, the proposal includes RD$17.7 billion in internal budget reallocations across existing government portfolios. Funding increases are planned for the Ministry of Public Health, Ministry of Interior and Police, the Office of the Presidency, and the Ministry of Defense. By contrast, appropriations for the Ministry of Tourism, Ministry of Energy and Mines, and the public debt service budget are set for reduction. Notably, the Ministry of Education will only reclassify RD$2 billion within its current approved budget, with no cut to its overall total allocation.
To build fiscal resilience against unexpected shocks, the administration is also planning to carry forward a RD$21.1 billion cash reserve from the 2025 fiscal year, earmarked specifically for emergency response and unforeseen events that may arise over the 2026 budget cycle.
Finally, the amendment updates existing budget legislation to add 23 new public investment projects focused on critical infrastructure. These projects span drinking water access, urban sanitation systems, mass transit networks, and sustainable energy infrastructure. All new projects will be financed by multilateral development partners, including the Inter-American Development Bank (IDB), the Development Bank of Latin America (CAF), the Central American Bank for Economic Integration (CABEI), the French Development Agency (AFD), the International Bank for Reconstruction and Development (IBRD), and the OPEC Fund for International Development (OFID).