Financial Crime World

Haiti: Execution of Social Spending and Customs Reform

Port-au-Prince, Haiti - The Haitian government has made significant strides in simplifying its tax code and publishing all customs-related codes and tariffs. Despite facing multiple challenges, the country’s macroeconomic outlook remains encouraging.

Fiscal Policy

Domestic revenue has seen a strong improvement, rising by 48 percent in the first half of FY2023, driven mainly by customs duties and improved revenue administration. Average monthly revenue exceeded 17 billion gourdes in the second quarter of FY2023, relative to a monthly average of 11 billion gourdes during the year-earlier quarter.

Spending Reserves

Spending related to the Fuel Subsidy Program (FSW) has not been spent as of April 30, 2023, and is being kept as reserves at the central bank. This reflects the authorities’ commitment to following proper procurement processes and respecting safeguards agreed under the Rapid Financing Instrument (RFI).

Safeguards

The FY2021 financial audit of the Haitian Revenue Administration (BRH) has been completed, and its audited financial statements have been published.

Outlook and Risks

The outlook for Haiti remains subject to multiple risks, including:

  • Security concerns
  • Intensified political instability
  • Gang-related disruptions to economic activity
  • Further spread of cholera
  • Extreme natural disasters

Externally, the country is vulnerable to:

  • Volatile remittance flows
  • Lower-than-expected external financing
  • Renewed surges in global food and energy prices

Normalization of the security situation would greatly improve the medium-term outlook. The projected path of public debt is sustainable, although consistent with a high risk of debt distress.

Customs Reform

The government has published all customs-related codes and tariffs, simplifying the process for importers and exporters.

IMF Support

The International Monetary Fund (IMF) is encouraged by the government’s efforts to simplify its tax code and implement customs reforms. The Fund remains committed to supporting Haiti in achieving a more stable and prosperous economy.