(2019-05) Report on the State's Financial Situation and the Efficiency of Public Expenditure (RSFEEDP V), FY 2017-2018

CSCCA (Cour Supérieure des Comptes et du Contentieux Administratif) • 2019

Summary — This report from the CSCCA analyzes Haiti's public finances and expenditure effectiveness for the 2017-2018 fiscal year. It reveals a significant budget deficit, underperformance in investment execution, and structural weaknesses in public resource generation. The document also examines the financial management of autonomous public enterprises and special funds, highlighting issues of inefficiency and clientelism.

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Key Findings

Public finances demonstrated significant fragility in 2017-2018, with budget execution failing to meet norms and substantial spending occurring without identified funding sources, risking the country's financial integrity.
Investment forecasts were largely unmet, particularly in priority sectors like agriculture and public works, due to non-disbursement of promised funds (especially APD) and poor planning.
Gross Fixed Capital Formation (FBCF) as a percentage of GDP significantly declined from 5.59% in 2012-2013 to 1.2% in 2017-2018, indicating a weakening of the country's infrastructure base.
Autonomous public enterprises (ONA, OAVCT, OFNAC) and special funds (FER, FNE, Pension Civile) suffer from administrative and financial dysfunctions, clientelism, and lack of strategic management, hindering their ability to provide essential public services.
Despite efforts to increase fiscal revenue, economic growth remained stagnant at 1.5% in 2017-2018 (vs. 3.9% target), exacerbated by a depreciating gourde and high inflation (14.4%), which reduced the real purchasing power of state revenues.

Full Description

The Cour Supérieure des Comptes et du Contentieux Administratif (CSCCA) presents its fifth report on the performance of public finances for the 2017-2018 fiscal year, continuing a tradition initiated in 2013-2014. This report is set against a backdrop of economic crisis and political conjuncture, with the new administration aiming for economic rigor and recovery, targeting 3.9% growth. However, the 2016 budget law, which mandated a triennial program-budget approach, was not fully implemented, and the 2005 decree for budget elaboration was still followed. The 2017-2018 budget, initially 144.2 billion gourdes and revised to 145.6 billion, aimed to mobilize 93.4 billion in fiscal resources and 50.8 billion in other financing (APD and internal funds). Actual fiscal collections reached 81.7 billion, 17.2% below forecasts. APD promises were only met at 12.8% for budgetary support. Investment execution was significantly low, with priority sectors like Public Works (MTPTC) and Agriculture (MARNDR) receiving only 12.5% and 10% of their allocated funds, respectively. This underperformance, coupled with a deteriorating exchange rate (70 gourdes/dollar by Sept 2018), severely impacted purchasing power and economic growth, which stood at a mere 1.5% instead of the projected 3.9%. The report concludes that public expenditure effectiveness was hampered by non-disbursement of funds, poor planning, and political interference, leading to a weakening of Gross Fixed Capital Formation (FBCF) from 5.59% of GDP in 2012-2013 to 1.2% in 2017-2018. Autonomous entities like ONA, OAVCT, and OFNAC also suffer from administrative and financial dysfunctions, clientelism, and inefficient resource management, failing to deliver essential public services effectively.

Topics

Geography

Time Coverage

2017-10-01 — 2018-09-30

Keywords

Public finance, budget, economic growth, public expenditure, investment, Gross Fixed Capital Formation, autonomous enterprises, ONA, OAVCT, OFNAC, special funds, FER, FNE, Pension Civile, fiscal policy, economic development, Haiti, governance, infrastructure, agriculture, tourism, education, health, national economy, financial management, fiscal year 2017-2018

Entities

Cour Supérieure des Comptes Et du Contentieux Administratif (CSCCA), Institut Haïtien de Statistique et d'Informatique (IHSI), Ministère de l’Agriculture, des Ressources Naturelles et du Développement Rural (MARNDR), Ministère des Travaux Publics, Transports et Communications (MTPTC), Ministère du Tourisme (MT), Ministère de l’Éducation Nationale et de la Formation Professionnelle (MENFP), Ministère de la Santé Publique et de la Population (MSPP), Office Assurance Véhicule Contre Tiers (OAVCT), Office National d’Aviation Civile (OFNAC), Office National d’Assurance Vieillesse (ONA), Fonds d’Entretien Routier (FER), Fonds National d’Éducation (FNE), Fonds de Pension Civile (FPCR), Ministère de l'Économie et des Finances (MEF), Banque de la République d'Haïti (BRH), Direction Générale des Impôts (DGI), Douane, Petro Caribe Fund, Conseil d’Administration des Organes de Sécurité Sociale (CAOSS), Organisation des Nations Unies, Fonds Monétaire International (FMI), Union Européenne, Ministère de la Planification et de la Coopération Externe (MPCE), Ministère de l'Intérieur et des Collectivités Territoriales (MICT), Ministère de la Jeunesse, des Sports et des Actions Civiques (MJSAC), Ministère de la Justice et de la Sécurité Publique (MJSP), Ministère des Affaires Sociales et du Travail (MAST), Ministère des Cultes (MC), Ministère à la Condition Féminine aux Droits de la Femme (MCFDF), Ministère du Commerce et de l'Industrie (MCI), Ministère de l'Environnement (MDE), Ministère des Haïtiens Vivant à l'Étranger (MHAVE), Loterie de l'État Haïtien (LEH), Fonds d'Investissement Public (FIP), Fonds de Développement Industriel (FDI), Fonds d'Assistance Économique et Sociale (FAES), Fonds de Gestion des Collectivités Territoriales (FGDCT), Conseil des Ministres, Parlement

Notes

Series: RSFPEDP (annual), labeled 'RSFEEDP V' (5th edition) on the cover, marked 'RAPPORT FINAL' dated 26 mai 2019. Site listing 'Publié le' shows 2017-12-06 (predates the report's own 26 May 2019 date printed inside; the actual publication/final-release date is the one printed on the cover).