The capital expenditure of the Dominican government closed the 2025 fiscal year at 2.6% of GDP, a level that reflects a notable boost in public investment. This figure, equivalent to 207.7517 billion pesos, exceeded the 2024 record by 11% and executed 18% more than the initial budget, according to the Ministry of Treasury.
Boost in tax revenues
Public sector revenues reached 1.246 trillion pesos, or 15.6% of projected GDP, with a year-on-year growth of 2.8%. This progress was driven by higher collections from personal and corporate income taxes, capital gains, and mining contributions due to rising gold prices. Historically, the mining sector has contributed 2-3% of annual tax revenues in the Dominican Republic, a trend that strengthened in 2025.
Control of deficit and public debt
The fiscal deficit ended at 3.45% of GDP, while public debt remained at 47.9% of GDP, levels considered sustainable by analysts. Central Government total spending reached 1.521 trillion pesos, or 19.1% of GDP, with primary spending growing 4.9% nominally. Compared to 2024, when the deficit hovered around 4%, this close demonstrates budgetary discipline.
Focus on key infrastructure
Capital expenditure concentrated on transportation, housing, and road works, prioritizing projects that stimulate the economy. Experts note that this execution above the initial budget responds to more efficient planning, similar to that recorded in 2023 with 2.4% of GDP in similar investments.
- Tax collection: Growth driven by formal employment and mining.
- Budget execution: 18% above the approved amount.
- Market impact: Improvement in EMBI and Moody’s rating.
The Ministry of Treasury emphasized that this fiscal performance has been well received by investors, with a reduction in country risk and positive revisions from rating agencies. In context, the Dominican Republic maintains an average GDP growth of 5% annually over the last decade, supported by such policies.
The capital expenditure of 2.6% of GDP positions the country to sustain its economic expansion in 2026, with an emphasis on productive sectors.