In its monetary policy note for the 3rd quarter of fiscal year 2020 (April-June) the Bank of the Republic of Haiti (BRH) concerning public finances, explains that the situation was marked by a downward variation in government revenue and expenditure increase compared to the second quarter of the fiscal year.

Extract from the BRH note :

"[...] during the third quarter of 2019-2020, taxes collected by the Haitian state reached just over 19 billion gourdes, a decrease of 12.45% compared to the second quarter. Expenses for their part showed an increase of 10.41%, to amount to nearly 47 billion [...] cumulatively, the receipts from October 2019 to June 30, 2020 showed an amount of just over 61 billion, up 6.44% over the same period of the previous fiscal year. As for cumulative expenditure, it totaled more than 106 billion, up 41.06% over the previous year."

For the third quarter of the current fiscal year, the drop in revenue, combined with the increase in spending, has led to an increase in the government's financing needs from the Central Bank. The total monetary financing for the first 3 quarters amounts to a little over 34 billion as of June 30, 2020 (30 billion initially planned) against nearly 29 billion as of March 31, 2020. As for banknotes cash flow, their outstanding amount reached just over 17 billion gourdes as of June 30, 2020, against nearly 13 billion as of March 30, 2020.

The BRH estimates that the outlook for the Haitian economy over the next quarter depends on three major factors.

• The socio-political climate with as a corollary the security situation which will be particularly decisive for the level of activity of the tertiary sector, the evolution of public revenues and the ultimate recourse by the State to financing from the Central Bank.

• The evolution of the coronavirus pandemic, should play a determining role in the evolution of the economic situation with a particular impact on the entries of visitors, the expenditure of the State as well as the external demand for exports

• The risks associated with the hurricane season should continue to weigh on the performance of the agricultural sector as well as on the availability of food in the markets.

Download the full BRH note (PDF) : https://www.haitilibre.com/docs/note_polmon3t20.pdf

SL/ HaitiLibre