The Dominican Republic’s fiscal deficit stood at 3.1% of GDP in 2023, slightly lower than in 2022. Total government spending increased by 10.7% YoY, while total revenues rose by 12.1%. Despite the government’s mid-year budget increases to counter the economic slowdown, the fiscal situation did not deteriorate as much as expected. However, the government did not make progress in implementing a tax reform to expand the tax base and increase revenue relative to GDP.