In a national context marked by a persistent security crisis, social tensions, profound institutional vulnerability, and a significant contraction in economic activity for the seventh consecutive year, which, according to the latest estimates for the 2024-2025 fiscal year, predicts a GDP contraction of -3.1%, the preparation of the budget for the 2025-2026 fiscal year is of strategic importance.

The 2025-2026 Budget Framework Letter, presented by Prime Minister Alix Didier Fils-Aimé, is in line with the actions identified in the 2024-2025 supplementary budget, which need to be consolidated to generate more tangible results for the benefit of the population.

The macroeconomic projections for the 2025-2026 budget are based on the anticipation of a gradual and partial restoration of the security climate and targeted public investments. This is a realistic approach, aimed at limiting the gaps between forecasts and actual results, such as those observed over the past six years. Price stability will be achieved through a rigorous monetary policy and rational management of public spending. Tax revenues will be stabilized by broadening the tax base and strengthening the administration. Finally, the budget deficit will be financed without recourse to monetary creation, favoring external resources and borrowing on the domestic market.

The macroeconomic framework underlying the 2025-2026 budget is based on :

• A real GDP growth rate of +0.3%;

• End-of-period inflation of 23.4%;

• A tax burden stabilized at 4.4% (as anticipated for 2024-2025), with a target of returning to the 2023-2024 level (5%) by the 2026-2027 fiscal year;

• Zero monetary financing;

• Net issuance of 25 billion Gourdes of Treasury bills.

As such, the budget proposals for the 2025-2026 fiscal year must consistently reflect these priorities and contribute to their concrete implementation.

Excerpts from the framework letter :

a) Public and national security :

The first priority area of the 2025-2026 budget concerns public and national security, now considered an essential factor of production, alongside labor and capital. To this end, sustained efforts will be made to rehabilitate police stations and precincts, increase the strength of the Haitian National Police (PNH) and the Haitian Armed Forces (FAd'H), and acquire modern equipment adapted to operational realities.

Coordination between security forces will be strengthened to ensure an integrated and effective response. Particular attention will be paid to the fight against organized crime, with the strengthening of specialized units responsible for dismantling criminal networks [...]

b) Constitutional Reforms and Organization of Elections :

Constitutional reform is essential for the reorganization of society. [...] The Government intends to make the upcoming elections a decisive turning point for Haitian democracy. To this end, it is important to strengthen the operational capacities of the CEP, ensure complete security for the electoral process, guarantee the delivery of voting materials throughout the country, and adequately train electoral officials. The introduction of reliable technologies will aim to improve the transparency of the election and limit the risk of fraud [...]

c) Economic recovery, infrastructure rehabilitation, and regional revival :

Haiti's economic recovery is based on an integrated approach combining structural reforms, recapitalization of businesses affected by the security crisis, support for micro, small, and medium-sized enterprises (MSMEs), and development of infrastructure and value chains in regional economic hubs. Particular attention will be paid to reviving the export textile and clothing sector, taking into account the impact of the renewal or otherwise of the HOPE/HELP Act. The trade and industry sector, a pillar of national economic activity, will play a key role in the recovery, particularly through facilitating the supply chain, reactivating distribution channels, and stimulating local production. [...]

As the main source of employment in rural areas, agriculture will be supported through investments in irrigation, mechanization, watershed protection, and the modernization of agricultural practices. Agribusiness, for its part, will benefit from incentives aimed at encouraging the local processing of agricultural products, strengthening value chains, and stimulating exports. [...]

d) Food security and access to basic social services :

[...] A targeted budgetary response is essential to improve food security, strengthen health and education systems, and ensure access to water and sanitation. The Government intends to prioritize these sectors through concrete actions such as the money transfer and food aid distribution to the most vulnerable populations, including internally displaced persons.

In the health sector, efforts will focus on reopening closed centers, strengthening hospitals, deploying mobile clinics, and conducting vaccination campaigns. The Minimum Emergency Response Program/Health, provided for in the amended budget to partially address the withdrawal of US assistance, will need to be strengthened [...]

e) Rule of Law, Justice, Governance, and the Fight against Corruption :

Strengthening the rule of law and justice is an essential pillar for restoring citizens' trust in public institutions and ensuring equality before the law. This includes, in particular, the rehabilitation of courts and prisons, the fight against prolonged pretrial detention, and capacity building for judicial personnel. The fight against corruption remains a priority, with increased support for audit institutions such as the ULCC [...]

f) Modernization of the tax and budget administration:

Modernizing the tax administration is essential to increase revenue mobilization and strengthen fiscal resilience. Emphasis will be placed on strengthening the Directorate General of Taxes (DGI) to address its weak internal organization, the narrow taxpayer base, and the slow rollout of its information system. The digitalization of declarations and payments by large and medium-sized enterprises must be accelerated to improve tax assessment, control, and collection functions.

The Tax Code, scheduled to come into force on October 1st, 2025, has been the subject of a structured action plan adopted by the competent authorities since 2023. Following the effective implementation of the Code, the focus will be on accelerating the implementation of delayed components to ensure a smooth and seamless transition. [...]

g) Budgetary Discipline and Submission Procedures :

In a context of limited resources, budget proposals must align with the indicative budget allocations communicated, avoid the programming of non-priority expenditures, and prioritize high-impact and realistic investments. Institutions must :

• Submit realistic budget proposals consistent with government guidelines;

• Include a three-year program aligned with the multi-year budget framework;

• Comply with employment ceilings and the current salary scale;

Break down the requested budget allocations, highlighting the geographical distribution, with a view to departmentalizing operating and investment budget allocations.

Download the full framework letter (French PDF, 9 pages) : https://www.haitilibre.com/docs/lettre-cadrage-budget-2025-2026.pdf

HL/ HaitiLibre