(2020-06) Report on the Country's Financial Situation and the Efficiency of Public Expenditure (RSFPEDP VII), FY 2019-2020

CSCCA (Cour Supérieure des Comptes et du Contentieux Administratif) • 2020

Summary — This report from the Haitian Superior Court of Accounts and Administrative Disputes (CSCCA) analyzes Haiti's financial situation and public expenditure efficiency for the 2019-2020 fiscal year. It highlights a second consecutive year of economic recession (-3.3% GDP contraction), driven by socio-political crises, rising insecurity, and the COVID-19 pandemic. The report identifies significant budget deficits, non-credible expenditure forecasts, and a heavy public debt burden, concluding that public spending was largely ineffective in achieving national development goals.

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Key Findings

Haiti's economy experienced a second consecutive year of recession in 2019-2020, with a -3.3% GDP contraction, driven by socio-political crises, insecurity, and the COVID-19 pandemic.
Public finances were characterized by a significant budget deficit of 6.78 billion gourdes in 2019-2020, an aggravation of 60% compared to the previous year, and non-credible expenditure forecasts.
The public debt burden is heavy, with the debt service increasing significantly to 61.51 billion gourdes in 2019-2020, representing 66.36% of total revenues, and internal debt being the largest component.
External financing was largely absent, and international aid was below expectations, forcing the state to rely excessively on monetary financing from the Central Bank (BRH), which exceeded budgeted amounts.
Public spending, particularly capital expenditures, was largely ineffective in key ministries (MTPTC, MICT, MSPP) with low execution rates, hindering the achievement of national development objectives.

Full Description

The seventh annual report by Haiti's Superior Court of Accounts and Administrative Disputes (CSCCA) provides a comprehensive analysis of the country's financial situation and the efficiency of public expenditure for the 2019-2020 fiscal year. The period was marked by recurrent socio-political crises, escalating insecurity ("Pays Lock" phenomenon, kidnapping), and the global COVID-19 pandemic, leading to a -3.3% contraction in Haiti's GDP, a second consecutive year of recession. The report details a budget of 198.7 billion gourdes, adopted late as a regularization budget, which aimed to address the COVID-19 crisis, strengthen internal security, implement rapid sectoral actions, and restore public finances. However, the CSCCA found significant discrepancies between budget forecasts and actual realizations. Total resources realized were 171.2 billion gourdes, falling short of predictions by 27.4 billion gourdes. External financing, particularly from Taiwan for electrification projects, was non-existent, and international aid was below expectations. The state heavily relied on internal monetary financing from the Central Bank (BRH), exceeding budgeted amounts. Public debt increased significantly, with the debt service becoming a major burden. The report concludes that public spending was largely ineffective, especially in capital expenditures, with low execution rates for key ministries like Public Works (MTPTC), Interior (MICT), and Health (MSPP), hindering the achievement of national development objectives outlined in the Strategic Development Plan of Haiti (PSDH).

Topics

Geography

Time Coverage

2019-10-01 — 2020-09-30

Keywords

Haiti, public finance, budget, economic recession, COVID-19, public debt, expenditure efficiency, monetary policy, fiscal year 2019-2020, CSCCA, economic indicators, public administration, development, government spending

Entities

Cour Supérieure des Comptes et du Contentieux Administratif (CSCCA), Ministère de l’Économie et des Finances (MEF), Banque de la République d'Haïti (BRH), Institut Haïtien de Statistique et d'Informatique (IHSI), Fonds Monétaire International (FMI), Banque mondiale, Nations Unies, Ministère des Travaux Publics, Transports et Communications (MTPTC), Ministère de l’Intérieur et des Collectivités Territoriales (MICT), Ministère de l’Agriculture, des Ressources Naturelles et du Développement Rural (MARNDR), Ministère de la Santé Publique et de la Population (MSPP), Ministère de l’Éducation Nationale et de la Formation Professionnelle (MENFP), Électricité d'État d'Haïti (EDH), Fonds d'Assistance Économique et Sociale (FAES), Parlement, Trésor Public, Taiwan, Union Européenne

Notes

Series: RSFPEDP (annual). FY2019-2020, 'RSFPEDP VII' (7th edition). Publié le 2020-06-06 per site listing.