Dominican Republic's tax hike collides with billions in unspent budget

Dominican Republic tax increase budget execution gap Haivanjoe Ng Cortiñas fiscal adjustment social spending

Economist Haivanjoe Ng Cortiñas warned that the Dominican government is pursuing a double fiscal adjustment: imposing an additional RD$50 billion in taxes while leaving roughly RD$34 billion of congress‑authorized spending unexecuted.

According to official budget data, social‑service expenditure reached RD$326.2 billion against a target of RD$336.5 billion, leaving a shortfall of about RD$10.3 billion. Capital investment lagged even more, with only RD$84 billion spent versus the planned RD$107.6 billion, a gap of roughly RD$23.6 billion. The unspent funds were earmarked for schools, hospitals, roads, water systems and other infrastructure.

Cortiñas argued that the reduced execution improves the government's fiscal indicators but harms Dominican families by curtailing public services and slowing economic dynamism. He emphasized that the fiscal reform’s stated aim of raising resources for public services is contradicted by the large unspent budget. On the same day, Cortiñas was sworn in as the new Secretary of Economic Affairs for the Fuerza del Pueblo.