Dominican Republic Deficit Reaches US$3.2 Billion
PUBLIC FINANCES · DOMINICAN REPUBLIC
Key Facts
- —The country A Caribbean economy of about 11 million people, a short flight from Miami. Tourism, remittances and free-zone exports to the US drive its growth.
- —Why it matters Interest on public debt is the fastest-growing claim on the budget. That shapes the risk on Dominican dollar bonds held by foreign investors.
- —Why now On Monday 5 October two Dominican papers published budget office (Digepres) data to 25 September. The same day the opposition PLD attacked the 2027 budget bill.
- —What happened Revenue reached RD$987.1 billion (about US$16.4 billion) and spending RD$1.18 trillion (about US$19.6 billion). The deficit was RD$191.2 billion (about US$3.18 billion).
- —The numbers Debt interest reached RD$234.9 billion (about US$3.90 billion) by 25 September, 75.5% of its full-year budget (Digepres via Diario Libre).
- —What it means for you Spending is close to plan. Bondholders will watch interest costs and the 2027 deficit target as Congress studies the bill.
- —Still open Whether Congress changes the 2027 bill, and how the Finance Ministry answers the PLD’s figures.
The Dominican Republic fiscal deficit reached RD$191.2 billion (about US$3.18 billion) between 1 January and 25 September, official budget data show. The gap is driven by interest on the public debt.
For US investors who hold Dominican dollar bonds, that interest bill is the number to watch. On Monday the main opposition party warned that the 2027 budget leaves even less room.
The figures come from the General Budget Directorate (Digepres), the Finance Ministry office that records state revenue and spending. Diario Libre and elDinero reported them on Monday 5 October.
What the Budget Office Recorded
Accrued revenue reached RD$987.1 billion (about US$16.4 billion) by 25 September. Spending totalled RD$1.18 trillion (about US$19.6 billion), Diario Libre reported from the Digepres records.
Current spending, such as wages, transfers and interest, took RD$1.04 trillion (about US$17.3 billion). Capital spending on investment was RD$135.9 billion (about US$2.26 billion).
The deficit equals about 2.2% of gross domestic product (GDP), elDinero reported. It is 67.1% of the RD$284.9 billion (about US$4.74 billion) planned for the whole of 2026.
By 25 September about 73% of the calendar year had passed. On that measure the Dominican Republic fiscal deficit is running slightly behind plan, not ahead of it.
Interest Is the Heaviest Line
Debt interest reached RD$234.9 billion (about US$3.90 billion) by 25 September. That is 75.5% of the RD$311.0 billion (about US$5.17 billion) set aside for interest this year.
Without interest the accounts show a primary surplus of RD$43.7 billion (about US$726 million), or 0.5% of GDP, elDinero reported. In other words, the state covers its day-to-day costs but borrows to pay its creditors.
Investment lags. Only 61.1% of the capital budget had been used, against 75.5% of the interest budget, Diario Libre noted.
How the interest bill overtook school spending is set out in Dominican Republic Debt Interest Passes Education Spending by 18 September. Another large outlay is covered in Dominican Electricity Subsidy Hits US$1.47 Billion.
The Opposition Targets the 2027 Budget
On Monday the Dominican Liberation Party (PLD) held a press conference on the 2027 budget bill. The PLD, a centrist party founded by Juan Bosch, ruled from 1996 to 2000 and 2004 to 2020 and is now in opposition.
Its vice-president, Temístocles Montás, a former economy minister, led the event. The bill was sent to Congress by President Luis Abinader of the governing Modern Revolutionary Party (PRM).
Montás said the bill plans central government revenue of about RD$1.51 trillion (about US$25.1 billion). He put the 2027 deficit at about RD$327.3 billion (about US$5.44 billion), or 3.4% of GDP.
He said a 2024 Finance Ministry plan had aimed for a 2027 deficit of about 2.4% of GDP. Interest of about RD$351.3 billion (about US$5.84 billion) would equal 3.7% of GDP, he added.
The party added a RD$44.6 billion (about US$741 million) transfer to the central bank. About RD$26 of every RD$100 collected would go to these two items, it said. El Nacional and El Nuevo Diario carried the figures.
The PLD also said education would get about 3.8% of GDP, below the 4% set by law. The party called for spending discipline and better tax collection rather than new taxes alone.
The bill, worth about RD$2.04 trillion (about US$33.9 billion), is before a joint commission of both chambers of Congress, El Nacional reported.
What It Means for You
For bond investors, the data show a government that stays close to its budget but pays more each year to its creditors. The central bank also tightened policy last week, as reported in Dominican Republic Central Bank Raises Rate to 5.50%.
The peso has weakened by about 2.7% against the dollar since the end of August, central bank reference rates show. A weaker peso raises the local cost of interest on dollar debt.
For American visitors and businesses, nothing changes for now. Neither the data nor the PLD statement involve new taxes, fees or travel rules.
What Is Not Known
The reports did not compare the deficit with the same period of 2025. It is also not clear how much of the interest bill falls due in the last quarter.
The Finance Ministry had not publicly answered the PLD’s figures in the reports available on Monday. The joint commission has not said when it will report on the 2027 bill.
The PLD’s GDP shares are its own calculations from the bill and are not independently confirmed. Conversions use the central bank reference rate of 2 October, 60.17 pesos per US dollar.
How large is the Dominican Republic fiscal deficit in 2026?
Budget office data show a central government deficit of RD$191.2 billion (about US$3.18 billion) from 1 January to 25 September 2026. The full-year plan is RD$284.9 billion (about US$4.74 billion).
Why does debt interest matter so much in the Dominican Republic?
Interest reached RD$234.9 billion (about US$3.90 billion) by 25 September. Without it, the accounts would show a primary surplus of about 0.5% of GDP.
What did the opposition say about the 2027 budget?
On 5 October the PLD said the 2027 bill plans a deficit of about 3.4% of GDP. A 2024 plan had aimed for 2.4%. It also said education falls below the legal 4% of GDP.
Sources: General Budget Directorate, Digepres (weekly execution report to 25 September); elDinero (Digepres data, 5 October); Diario Libre (Digepres data, 5 October); El Nacional (PLD on the 2027 budget); El Nuevo Diario (PLD statement); De Último Minuto (PLD, education share); Central Bank of the Dominican Republic (reference exchange rates).
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error
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