Dominican Republic debt surge sparks political criticism

Public borrowing in the Dominican Republic has risen sharply, with the total debt of the non‑financial public sector increasing from US$43.1 billion in August 2020 to US$66.4 billion by May 2026 – an addition of roughly US$23 billion over six years. The government argues that 80 % of the loans since 2020 were used to refinance inherited obligations and that the debt‑to‑GDP ratio fell from 69.1 % in 2020 to 58.5 % at the end of 2025. Opposition figures dispute the data, claiming the debt grew by 45 % and that most new borrowing has financed current‑year deficits, subsidies and public spending.

Ramfis Domínguez Trujillo, president of the Democratic Hope Party (PED), warned that the country is “very badly off” due to the rising debt, a 40 % increase in the basic food basket and a budget expansion of 843 billion pesos over the past six years. He also noted the addition of about 100,000 public sector jobs and urged the administration to cut spending before introducing new taxes, while supporting certain adjustments in the recent fiscal package such as a higher income‑tax exemption threshold and the removal of advance payments.