(2018-05) Report on the State's Financial Situation and the Efficiency of Public Expenditure (RSFEEDP IV), FY 2016-2017

CSCCA (Cour Supérieure des Comptes et du Contentieux Administratif) • 2018

Summary — This fourth report by the CSCCA analyzes Haiti's financial situation and public expenditure effectiveness for the 2016-2017 fiscal year, focusing on state financing mechanisms amidst declining international aid. It examines public finance management during a transitional period involving two elected governments and one transitional government. The report highlights the state's financial situation, financing mechanisms, and the effectiveness of public spending, including investment projects.

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Key Findings

Current revenues for 2016-2017 reached 74.9 billion gourdes, exceeding revised forecasts by 3.5 billion gourdes, contributing to a positive basic budgetary balance.
External financing for public investments was significantly under-executed, with only 17.43 billion gourdes realized against 52.318 billion planned, mainly due to 27.8 billion in non-disbursed external resources.
The Haitian fiscal system remains underexploited, with over 90% of DGI revenues from the Ouest department and a low tax pressure compared to Latin America.
Public investment projects, especially construction, face serious execution problems such as unpaid expropriation costs and poorly conducted studies, leading to increased costs and delays.
The total public debt increased by nearly 80 billion gourdes between 2012-2013 and 2016-2017, with currency depreciation alone increasing external debt by 26 billion gourdes.

Full Description

This fourth report from the Cour Supérieure des Comptes et du Contentieux Administratif (CSCCA) provides an in-depth analysis of Haiti's financial situation and the effectiveness of public expenditures for the 2016-2017 fiscal year. It specifically focuses on the state's financing mechanisms, a critical concern given the global decline in public development aid. The report examines public finance management during a complex transitional period, where the state budget was prepared and executed by two elected governments and one transitional government. The report is structured into three main parts: the state's financial situation for 2016-2017, an examination of state financing mechanisms, and an evaluation of public expenditure effectiveness. Key findings indicate that current revenues reached 74.9 billion gourdes, exceeding revised forecasts, which helped reduce the financing need despite restrictions on public investments. However, external financing for public investments fell significantly short of projections, highlighting the fragility of external resources. The report also evaluates the efficiency of public investment projects, noting serious execution problems for construction projects due to issues like unpaid expropriation costs and poorly conducted studies, while agricultural projects were deemed effective despite rural challenges.

Topics

Geography

Time Coverage

2016-10-01 — 2017-09-30

Keywords

Finances publiques, Haïti, Budget, Dépenses publiques, Recettes fiscales, Dette publique, Investissements publics, Efficacité, Gouvernance, Administration publique, Exercice fiscal 2016-2017, CSCCA

Entities

Cour Supérieure des Comptes et du Contentieux Administratif (CSCCA), Direction Générale des Impôts (DGI), Administration Générale des Douanes (AGD), Banque de la République d’Haïti (BRH), Ministère de l'Économie et des Finances (MEF), Fonds Monétaire International (FMI), Banque Mondiale (BM), Jocelerme Privert, Michel Martelly, Lafontant-Moïse

Notes

Series: RSFPEDP (annual), labeled 'RSFEEDP IV' (4th edition) on the cover, marked 'Rapport Final'. Exact release date not printed on the pages checked; site 'Publié le' shows 2017-07-27. Largest file in this batch (~17.4MB, still under the 25MB cap).