Dominican Republic seeks Senate approval for amended 2026 budget

Santo Domingo.- The Dominican government has submitted a bill to the Senate seeking to amend the 2026 General State Budget, introducing changes aimed at boosting public investment, maintaining essential public services, and protecting vulnerable sectors amid evolving economic conditions.

The proposal reflects the impact of international market volatility, trade disruptions, and the implementation of Law 30-26, which seeks to strengthen tax collection through administrative simplification and a broader tax base.

Under the revised budget, Central Government revenue is projected at RD$1.383 trillion, while total spending would increase to RD$1.785 trillion, resulting in a fiscal deficit of RD$280.6 billion.

The bill allocates an additional RD$40.98 billion to priority institutions, including the Ministry of Public Works, Ministry of Agriculture, Ministry of Housing (Mivhed), Ministry of Industry, Commerce and MSMEs (MICM), and the Ministry of Finance and Economy, among others.

It also proposes RD$17.7 billion in budget reallocations, increasing funding for Public Health, Interior and Police, the Presidency, and Defense, while reducing appropriations for Tourism, Energy and Mines, and Public Debt. The Ministry of Education would reclassify RD$2 billion within its existing budget without reducing its overall allocation.

Additionally, the government plans to maintain a RD$21.1 billion cash reserve from the 2025 fiscal year to respond to emergencies and unforeseen events.

The proposal also amends the budget law to include 23 new public investment projects in areas such as drinking water, sanitation, mass transit, and energy, financed by multilateral institutions including the Inter-American Development Bank (IDB), CAF, CABEI, AFD, IBRD, and the OPEC Fund for International Development (OFID).