Public Expenditure Management and Financial Accountability Review (PEMFAR): Improving Efficiency of the Fiscal System and Investing in Public Capital to Accelerate Growth and Reduce Poverty
Summary — This joint World Bank and Inter-American Development Bank report examines Haiti's public expenditure management and financial accountability systems. It provides recommendations for improving fiscal efficiency and public capital investment to promote economic growth and poverty reduction.
Key Findings
- Haiti's fiscal system requires significant improvements in efficiency and public expenditure management to support economic growth.
- External financing has substantial influence on Haiti's public investment program structure and implementation.
- Budget execution faces challenges that limit the effectiveness of public spending.
- Shift in budget allocation toward economic and social sectors shows positive trends.
- Debt relief provides fiscal space opportunities that need to be leveraged effectively.
Full Description
This Public Expenditure Management and Financial Accountability Review (PEMFAR) is a comprehensive joint report by the World Bank, Inter-American Development Bank, and Government of Haiti. The report analyzes Haiti's fiscal system, public expenditure patterns, and financial management practices following a year of collaborative work involving government institutions, private sector, NGOs, and international donors.
The review examines the macroeconomic and fiscal context, analyzing Haiti's economic structure, growth patterns, and poverty situation alongside the public finance structure. It provides a detailed analysis of public expenditure trends and patterns, including functional classification of spending and international comparisons of budget allocations across economic and social sectors.
The report includes a comprehensive Country Financial Accountability Assessment covering legal and institutional frameworks, budget preparation and execution, accounting and financial reporting, debt management, internal controls, and procurement systems. It evaluates the influence of external financing on Haiti's public investment program and examines budget execution challenges.
The PEMFAR concludes with policy recommendations aimed at improving the efficiency of Haiti's fiscal system and enhancing public capital investment to accelerate economic growth and reduce poverty, providing a roadmap for strengthening public financial management in the country.