Senate approves borrowing of more than RD$401 billion for the 2026 Budget

Santo Domingo.- The Senate of the Republic concluded this Thursday the legislative process of the bill that authorizes the Government to contract loans for a total amount of RD$401,767,814,730.00 during the year 2026. The initiative was known and approved by the upper house in less than 24 hours after having been received, after running the same fate in the Chamber of Deputies, where it was declared urgent and sanctioned in two consecutive readings. The piece had the majority support of the legislators of the Modern Revolutionary Party (PRM) and its allies, despite the rejection of the opposition blocs in both chambers. With its final approval, the project now goes to President Luis Abinader for promulgation or observation. According to Representative Franklin Paulino, the authorized debt will allow the Government to cover the deficit contemplated in the General State Budget for 2026. He detailed that RD$280,575.3 million will be allocated to support the national budget, including current expenses such as the payroll of public institutions, while RD$121,192.6 million will be used for the payment of interest corresponding to debts incurred in previous years.

“The bulk of these resources will be used to honor existing commitments. It’s a payment towards the interest on previous loans,” explained Paulino, noting that the initiative seeks to guarantee financial stability and operational continuity of the State.

The project also empowers the Executive Branch to operate, administer, and manage up to 10% of the liabilities on the balance sheet of the Non-Financial Public Sector debt, with the aim of improving the maturity profile, reducing financial costs, or decreasing exchange rate risks.

In the Senate, of the three opposition lawmakers, only Omar Fernández was present, who did not express an opinion during the session. Eduard Espiritusanto and Félix Bautista were absent. The approval also comes after Congress gave the green light to two other loans exceeding RD$15,000 million, destined for public transport projects in Santo Domingo and the strengthening of the food value chain.

From the opposition, the criticisms focused on the speed with which the project was approved. PLD deputy Charlie Mariotti warned about the haste of the legislative process and questioned the discretion granted to the Ministry of Finance and Economy to decide currency, terms, and placement markets without prior approval from Congress. In the same vein, congresswoman Ydenia Doñé criticized what she called a lack of effective oversight by the Legislative Branch, while the legislator from the Fuerza del Pueblo party, Félix Michel, expressed concern about the lack of information on the use of resources approved in previous years. “You cannot govern solely on the basis of debt without providing clear accountability to the country,” she stated. Despite objections, the official majority imposed its criteria and turned the authorization of debt into law, one of the most relevant financial decisions of Congress for the year 2026.