Friday March 13, 2022, Michel Patrick Boisvert, the Minister of Economy and Finance presented the ways and means and the estimates of the various macroeconomic indicators of the rectified general budget for the fiscal year 2021-2022.

Summary in figures:

Budget Resources:

“The resources of the 2021-2022 budget amount to just over 200 billion gourdes, including 120 billion (57%) of current revenue (71.2 billion of internal revenue and 48.8 billion of customs revenue)

Financing of the balance of the budget (43%)

External partners: 24.3 billion

Treasury bill issues: 12.48 billion

Financing by the BRH: 46.47 billion

Objective of the amending budget:

Restoration of a serene political and security climate to facilitate the holding of elections for the renewal of political personnel;

Financing of the Integrated Recovery Plan for the Southern Peninsula (PRIPS) devastated by the earthquake of August 14, 2021;

Implementation of the National Policy for Social Protection and Promotion (PNPPS);

Financing of agricultural campaigns to mitigate the anticipated rise in inflation, particularly due to the impacts of the geopolitical crisis in Eastern Europe;

Mobilization of domestic resources so as to be less dependent on external aid and also restore budgetary balance;

Reduction of the financing of the Bank of the Republic of Haiti (BRH) compared to its level of the previous fiscal year;

Continued implementation of the Tax Expenditure Rationalization Plan (PRDF);

Raising salaries in the civil service following the adjustment of the minimum wage.

Estimated expenses (+9.1%)

Projected expenditure: 210.5 billion Gourdes (+9.1% compared to the budget of the previous year)

Minister Boisvert justifies this increase by the Government's desire to revive economic activity, to mitigate the negative fallout from the war between Russia and Ukraine, to adjust the salaries of civil servants and to implement social programs in favor of the most vulnerable groups to mitigate the impacts of the adjustment in the prices of petroleum products, carried out during the month of December 2021"

Current expenditure: 141.9 billion gourdes (+17.2% compared to the previous year. Increase attributable mainly to wages 66.8 billion (+11.8%) and taking into account the subsidy for petroleum products of 20.1 billion gourdes).

Public investments:

Public investment expenditure: 38.4 billion financed up to 15.3 billion (39.9%) by the Public Treasury and up to 23.1 billion (60.1%) by grants and project loans.

Key estimates by September 30, 2022:

Real GDP growth rate: +0.3% after three years of economic recession;

Inflation rate: 27.3% year-on-year;

Total tax revenue: 120.1 billion gourdes (+33% compared to the collection of the previous year (2020-2021);

Tax pressure rate: 6% (5.7% the previous year);

Total expenditure estimated at 9.1% of GDP (7.4% the previous year);

Net cash issues: 12.48 billion (5.6 billion the previous year)

Monetary financing: 46.47 billion (-17.8% than the previous year)

SL/ HaitiLibre