(2022-10) Report on the Country's Financial Situation and the Efficiency of Public Expenditure (RSFPEDP IX), FY 2021-2022

CSCCA (Cour Supérieure des Comptes et du Contentieux Administratif) • 2022

Summary — This report by the CSCCA analyzes Haiti's economic and financial situation for the 2021-2022 fiscal year, highlighting a fourth consecutive year of recession with a -1.7% GDP contraction. It evaluates the effectiveness of public spending, noting significant shortfalls in resource mobilization and investment, particularly in key sectors like agriculture, justice, and health. The report emphasizes persistent challenges such as insecurity, political crises, high inflation, and heavy reliance on external financing and central bank monetary support.

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Key Findings

Haiti experienced a fourth consecutive year of recession in 2021-2022, with a real GDP contraction of -1.7%.
Public resource mobilization fell short of expectations (92.65% realization rate), and public spending execution was 91.72%, leading to a problematic budgetary surplus due to accounting omissions.
Public debt and its service are increasing, reaching 524.80 billion gourdes (up 14.44%) and 176.26 billion gourdes (up 11%) respectively, limiting the government's capacity to fund essential services.
Inflation surged to 37.8% in 2021-2022, significantly exceeding the government's 27.3% target, driven by external factors and internal issues.
Investments in key sectors like agriculture, justice, and health were largely under-utilized or insufficient, hindering modernization and development objectives.

Full Description

The ninth annual report by the Cour Supérieure des Comptes et du Contentieux Administratif (CSCCA) provides a comprehensive analysis of Haiti's financial situation and the effectiveness of public spending for the 2021-2022 fiscal year. The country experienced a fourth consecutive year of recession, with a real GDP contraction of -1.7%, driven by a deteriorating security climate, recurrent political crises, fuel shortages, and the lingering effects of the August 2021 earthquake. All economic sectors, including primary (-4.5%), secondary (-0.2%), and tertiary (-1.6%), saw declines. The report highlights significant challenges in public finance management, including a budget adopted late in violation of legal provisions, and a substantial shortfall in revenue collection (92.65% realization rate). Public spending, while showing a budgetary surplus according to the Ministry of Economy and Finance, is deemed problematic by the CSCCA due to the exclusion of certain FNE resources and current account expenditures, which would otherwise reveal a deficit of 9.89 billion gourdes. The document also points to a heavy reliance on internal and external financing, a rising public debt burden (524.80 billion gourdes, up 14.44%), and persistent high inflation (37.8% in 2021-2022). Key recommendations include strengthening budgetary planning, increasing public investments in strategic sectors (health, education, agriculture, justice), implementing structural economic reforms, enhancing institutional capacities, improving governance and transparency, and promoting economic diversification to reduce import dependence.

Topics

Geography

Time Coverage

2021-10-01 — 2022-09-30

Keywords

Public finance, Budget, Public spending, Haiti economy, Recession, Inflation, Public debt, Economic governance, Fiscal policy, Investment, Agriculture, Energy subsidies

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), Ministère de la Justice et de la Sécurité Publique (MJSP), Ministère de l'Agriculture, des Ressources Naturelles et du Développement Rural (MARNDR), Ministère de la Santé Publique et de la Population (MSPP), Électricité d'État d'Haïti (EDH)

Notes

Series: RSFPEDP (annual). FY2021-2022, 'RSFPEDP IX' (9th edition). Publié le 2022-10-06 per site listing.