(2022-08) Budget Framework Letter FY2022-2023 (Prime Minister's Memorandum to Spending Authorities)

Primature (Cabinet of the Prime Minister) • 2022

Summary — This memorandum from Prime Minister Ariel Henry to all spending authorities of the public administration sets out the framework for the FY2022-2023 budget within a new multi-year budget-programme approach. It reviews the deteriorating FY2021-2022 macro-fiscal situation (GDP contraction, accelerating inflation, weak revenue) and lays out growth, inflation, external-sector, fiscal-pressure and deficit targets for 2022-2023 to 2024-2025, plus nine priority spending areas.

View Document View Original Source

Key Findings

FY2021-2022 real GDP contracted -0.4% versus an initial +0.3% projection, the fourth consecutive year of recession.
Inflation reached 27.8% in May 2022 and was projected at 28.8% by end-September 2022.
Only 83.4 billion gourdes (69% of the 2021-2022 budgeted amount) had been collected by end-June 2022.
Net treasury-bond issuance rose to 11.2 billion gourdes over the first three quarters, versus 6.7 billion a year earlier.
Projections target 0.4% GDP growth and a 2.3%-of-GDP deficit ceiling for FY2022-2023, with tax pressure rising from 5.8% to 7% by 2024-2025.

Full Description

Signed by Prime Minister Dr. Ariel Henry in Port-au-Prince on 2 August 2022, this framework letter (lettre de cadrage) opens the FY2022-2023 budget-preparation process under Haiti's May 2016 pluriannual budget-programme law. It reviews FY2021-2022 performance: real GDP fell -0.4% (versus an initial +0.3% projection), inflation reached 27.8% in May 2022 and was projected to hit 28.8% by end-September 2022, private transfers and FDI declined, and by end-June only 83.4 billion gourdes (69% of the 2021-2022 budgeted amount) had been collected by fiscal and customs administrations, with net treasury-bond issuance at 11.2 billion gourdes for the first three quarters versus 6.7 billion a year earlier. It also cites progress under the IMF Staff Monitored Program, a CSCCA audit of COVID-19 spending, and reduced fuel subsidies. For FY2022-2023 to 2024-2025 the letter sets projections of 0.4% real GDP growth in 2022-2023 (averaging 1.2% over three years), inflation decelerating to 24.5% in 2022-2023 and 12.4% in 2024-2025, a tax-pressure ratio rising from 5.8% to 7%, and a budget-deficit ceiling of 2.3% of GDP in 2022-2023 (stabilizing near 2.8% of GDP by 2024-2025). It lists nine budgetary priorities (elections, the PNPPS social-protection programme, agricultural-campaign financing, the Southern Peninsula recovery plan PRIPS, anti-smuggling/anti-money-laundering efforts, voluntary retirement, public-administration reform, gender mainstreaming, and anti-trafficking) and announces that the budget will be accompanied by a Medium-Term Budget Framework (CBMT) covering FY2022-2023 through 2024-2025.

Topics

Geography

Time Coverage

2021-10 — 2025-09

Keywords

lettre de cadrage, budget programme pluriannuel, CBMT, Ariel Henry, Primature, deficit budgetaire, pression fiscale, inflation, PNPPS, PRIPS, budget FY2022-2023

Entities

Primature, Ministere de l'Economie et des Finances (MEF), Banque de la Republique d'Haiti (BRH), FMI, CSCCA, AGD, DGI, PNPPS, PRIPS, PME

Notes

This letter is issued and signed by the Prime Minister's office (Primature), not by MEF, though it directs the MEF-led budget process; organization set to Primature accordingly. Cover/signature block dates the letter 02 Aout 2022 in Port-au-Prince; used 2022-08 as the publication month. A sibling document (mef-cadrage-2022-2023-a) covers the same FY2022-2023 budget framework letter; the two appear to be near-duplicate copies/versions of the same memorandum and should be checked against each other for exact textual differences before both are kept in the public corpus.