(2024-09) Report on the implementation of the Public Finance Reform

MEF - Ministère de l'Économie et des Finances • 2024

Summary — This report from the CRFP-GE details the progress of public finance and economic governance reforms in Haiti from January to June 2024. It highlights significant challenges posed by the ongoing socio-political and security crisis, which severely impacted fiscal revenue mobilization and the operationalization of various reform initiatives. Despite these hurdles, efforts continued in areas such as tax system modernization, treasury management, and anti-corruption, albeit with mixed results and delays.

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Key Findings

Fiscal revenue mobilization significantly declined in Q2 and Q3 2023-2024 due to the socio-political and security crisis, despite a previous upward trend.
The modernization of the tax management system (RMS) and the implementation of the new Fiscal Code faced delays and challenges, including the lack of a validated reference framework and security issues.
Operationalization of the Single Treasury Account (CUT) is ongoing but slow, with only 16.7% of identified accounts integrated, hindered by donor agreement and legal research difficulties.
Public debt management included issuing Treasury Bonds to cover state treasury gaps, with 52.73 billion Gourdes outstanding as of June 2024, primarily short-term bonds.
Anti-corruption efforts, including the establishment of departmental ULCC offices and CSCCA's acquisition of audit software, faced operational hurdles due to the security situation and staff exodus.
The economic context is marked by persistent negative growth and rising inflation, with the government implementing a prudent budgetary policy and the BRH regulating liquidity to stabilize the exchange rate.

Full Description

This report by the Commission for the Reform of Public Finance and Economic Governance (CRFP-GE) provides an update on the implementation of public finance reforms in Haiti during the first half of 2024. The period was marked by a severe socio-political and security crisis, which significantly hampered the functioning of public and private administrations and led to a substantial decline in fiscal and customs revenue mobilization. Despite these adverse conditions, the report outlines ongoing efforts across several key missions, including the modernization of the tax management system (RMS), the operationalization of the Single Treasury Account (CUT), and the strengthening of public investment planning. The document also details initiatives in budgetary control, transparency, and anti-corruption, with institutions like the CSCCA and ULCC making strides in audit software acquisition and establishing departmental offices, though facing implementation delays due to the security context. Economic indicators reveal a persistent negative growth trend and rising inflation, yet the government maintained a prudent budgetary policy. The report concludes by emphasizing the need for continued efforts in fiscal code application, CUT consolidation, and developing a new public finance reform strategy to address the country's persistent challenges.

Topics

Geography

Time Coverage

2023-10-01 — 2024-09-30

Keywords

Public finance reform, economic governance, Haiti, fiscal policy, treasury management, anti-corruption, budget, tax administration, customs, public investment, financial management, security crisis, economic crisis, FMI, World Bank, public administration, national development

Entities

Commission de Réforme des Finances Publiques et de Gouvernance Economique (CRFP-GE), Direction Générale des Impôts (DGI), Administration Générale des Douanes (AGD), Ministère de l'Économie et des Finances (MEF), Direction Générale du Trésor et de la Comptabilité Publique (DGTCP), Cour Supérieure des Comptes et du Contentieux Administratif (CSCCA), Unité de Lutte Contre la Corruption (ULCC), Banque de la République d'Haïti (BRH), Fonds Monétaire International (FMI), Banque Mondiale (BM), Nations Unies, CARICOM, Expertise France, Comité de Pilotage Stratégique, Plan Stratégique de Développement d'Haïti (PSDH), Programme Haïtien d'Appui au Renforcement de l'État (SBC II), Plan National de Protection et de Promotion Sociale (PNPPS), Programme de Modernisation de l'État (PME), Plan Décennal de l'Éducation et de la Formation (PDEF), Direction Générale du Budget (DGB), Ministère de la Planification et de la Coopération Externe (MPCE), Commission Nationale des Marchés Publics (CNMP), Ordre des Comptables professionnels Agrées d'Haïti (OCPAH), Collectif pour le Contrôle de l'Intégrité Publique (COCIP), Institut Haïtien de Statistique et d'Informatique (IHSI), Comité National de Lutte contre le Blanchiment des Avoirs (CNLBA), Bureau des Affaires Financières et Économiques (BAFE), Global Facility, Union Européenne (UE), Banque Interaméricaine de Développement (BID), Agence Française de Développement (AFD), Free-Balance, Cybernetica, NATCOM, Ministère de la Justice et de la Sécurité Publique (MJSP), Ministère de l'Éducation Nationale et de la Formation Professionnelle (MENFP), Ministère des Affaires Sociales et du Travail (MAST)

Notes

MEF /documentation/doc_rapport page, published 28 Sept 2024. PFM-reform progress report (not a pure outturn table) but directly relevant to a Public Finance Review. Title truncated on site.