(2020-10) Annexes to the FY2020-2021 General Budget: Statement of Motives and Medium-Term Macroeconomic Framework
Summary — Published in Le Moniteur (Special No. 30-A, 5 October 2020), this MEF annex to the FY2020-2021 general budget sets out the statement of motives behind the budget and the medium-term macroeconomic framework underpinning it. It presents the FY2020-2021 budget of 254,704 million gourdes (up 28.2% from FY2019-2020), its financing structure, and macroeconomic projections through 2023 under the Post-COVID-19 Economic Recovery Plan (PREPOC 2020-2023).
Key Findings
- FY2020-2021 general budget set at 254,704 million gourdes, up 28.2% from 198,700 million gourdes in FY2019-2020.
- Personnel costs rise 40.1% to 66,559 million gourdes to align with the minimum wage; subsidies fall 30.7% to 26,273 million gourdes mainly from removing the fuel subsidy.
- GDP growth projected at 2.4% for FY2020-2021 (revised down from -3.6% to -2.9% for FY2019-2020) with year-end inflation of 18.2%.
- Tax revenue projected at 128,040 million gourdes (+50.3%), raising the tax burden to 8.4% from 6.5%.
- The gourde appreciated roughly 72% against the dollar between 12 August 2020 (121.25 HTG/USD) and 25 September 2020 (70.50 HTG/USD) following BRH and MEF measures.
Full Description
This document, published as a special issue of Le Moniteur (No. 30-A, Monday 5 October 2020), reproduces two annexes to Haiti's FY2020-2021 general budget prepared by the Ministere de l'Economie et des Finances (MEF). The first part, the statement of motives, explains that the budget was drafted under the Loi du 4 mai 2016 (LEELF) in a context still marked by socio-political tension and the COVID-19 pandemic, and that it is framed by the Post-COVID-19 Economic Recovery Plan (PREPOC 2020-2023). It sets total resources and expenditures at 254,704 million gourdes, a 28.2% increase over the FY2019-2020 budget of 198,700 million gourdes, driven by higher revenue mobilization efforts, donor support, and new domestic financing instruments. It breaks down resources (132,613 million gourdes domestic; 29,946 million gourdes external partner support; 92,145 million gourdes from treasury bond issuances and bank/BRH borrowing) and expenditures (49,194 million gourdes debt service; 66,559 million gourdes personnel costs, up 40.1%; 33,572 million gourdes current operations; 26,273 million gourdes subsidies, down 30.7% mainly from removing the fuel subsidy; 74,194 million gourdes public investment). It also lists priority reform measures, including the Plan de Rationalisation des Depenses Fiscales (PRDF) and steps toward budget-programme implementation. The second part, the medium-term macroeconomic framework note, reviews the 2019-2020 macroeconomic situation (a revised GDP contraction of -2.9%, a currency appreciation of about 72% between August and September 2020 following BRH and MEF interventions) and projects FY2020-2021 GDP growth of 2.4%, year-end inflation of 18.2%, tax revenue of 128,040 million gourdes (a 50.3% increase) and a tax burden of 8.4%, with medium-term projections through 2022-2023 of average 3% annual growth and inflation converging to 10%.
Notes
Publication date taken from the Le Moniteur masthead (Numero Special 30-A, Lundi 5 Octobre 2020); no separate MEF cover date is given. Figures for the FY2020-2023 medium-term projections and the FY2019-2020 revised estimates come from the same MEF/DEEP table (version du 30 sept 2020) reproduced on p.7.